Hogan Corporation issued a 5 percent stock dividend on 20,000 shares of its $10 par common stock. At the time of the dividend, the market value of the stock was $15 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:
![366_264-B-A-C (269).png](https://secure.tutorsglobe.com/CMSImages/366_264-B-A-C (269).png)
c. Prepare the journal entry to record the stock dividend.