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Journal Entry for Stock Dividend

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Issued 410 shares of $80 par value preferred stock at par.
Issued 640 shares of $80 par value preferred stock in exchange for land that had an appraised value of $81,600.
Issued 21,000 shares of $4 par value common stock for $10 per share.
Purchased 5,200 shares of common stock for the treasury at $10 per share.
Sold 2,100 shares of the treasury stock purchased in transaction d for $12 per share.
Declared a cash dividend of $1.6 per share on the preferred stock outstanding, to be paid early next year.
Declared and issued a 4% stock dividend on the common stock when the market price per share of common stock was $14. (Assume state law allows stock dividends and stock splits on treasury stock.)
Debit Credit
Retained earnings = $11,760
Common Stock _________
Additional paid-in capital _________

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The solution provides the journal entry for stock dividend.

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The Journal Entry for 4% Stock Dividend will be based 21,000 shares issued

Stock dividend ...

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