Transtech, Inc. has 200,000 common shares outstanding. Transtech, Inc. declares and distributes a 5% stock dividend when

Question:

Transtech, Inc. has 200,000 common shares outstanding. Transtech, Inc. declares and distributes a 5% stock when the market value of its shares is $10 per share.
1. Journalize Transtech’s declaration and of the stock on September 30. An explanation is not required.
2. What is the overall effect of the stock on Transtech’s total assets? On total shareholders’ equity?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...