Question - On January 1, 2012, Sheperd Corporation had $1,371,000 of common stock outstanding that was issued at par and retained earnings of $707,900. The company issued 28,900 shares of common stock at par on July 1 and earned net income of $392,900 for the year.
Journalize the declaration of a 17% stock dividend on December 10, 2012, for the following two independent assumptions.
(a) Par value is $10 and market value is $14.
(b) Par value is $5 and market value is $9.