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Exercise 10-69 (Algorithmic) Stock Dividends Penguin Company has the following information regarding its common stock: Its...

Exercise 10-69 (Algorithmic)
Stock Dividends

Penguin Company has the following information regarding its common stock:

Its common stock is $15 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding.

On August 22, 2013, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share.

1. Prepare the journal entry to record declaration and payment of this stock dividend. For a compound transaction, if an amount box does not require an entry, leave it blank.

2. Prepare the journal entry to record declaration and payment assuming it was a 30% stock dividend.

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