On January 1, 1997, the Keyes Corporation had \(\$ 1,500,000\) of common stock outstanding that was issued at par and retained earnings of \(\$ 750,000\). The company issued 50,000 shares of common stock at par on July 1 and earned net income of \(\$ 400,000\) for the year.

\section*{Instructions}

Journalize the declaration of a \(10 \%\) stock dividend on December 10, 1997, for the following independent assumptions:

(1) Par value is \(\$ 10\) and market value is \(\$ 15\).

(2) Par value is \(\$ 5\) and market value is \(\$ 20\).