magee corporation issued a 4 percent stock dividend on 30 000 shares of its 10 par c 650429

Accounting for stock dividends

Magee Corporation issued a 4 percent stock dividend on 30,000 shares of its $10 par common stock. At the time of the dividend, the market value of the stock was $30 per share.

Required

a. Compute the amount of the stock dividend.

b. Show the effects of the stock dividend on the financial statements using a horizontal statements model like the following one.