The shareholders equity of Raven Company is as shown:

RAVEN COMPANY

Partial Balance Sheet

1	Common stock, $10 par	$300,000.00
2	Additional paid-in capital on common stock	200,000.00
3	Retained earnings	300,000.00
4		$800,000.00

Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $25 per share.

Required:

1.	Assuming the board of directors recommends a 6% stock dividend, prepare:
a.	the journal entry at the date of declaration
b.	the journal entry at the date of issuance
c.	shareholders equity after the issuance
2.	Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1.