Chapter 11, Problem 11.22E

1.

To determine

Prepare the Stockholder’s equity section of the balance sheet for comparative purpose (a) immediately before the stock dividend and (b) immediately after the stock dividend.

2.

To determine

Identify the effect of stock dividend on assets, liabilities and stockholder’s equity.

3.

To determine

Explain the way accounts in the stockholder’s equity section of the balance sheet will change if stock split is announced instead of stock dividend.