Chapter 13, Problem 13.9SE

1.

To determine

Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is an inadequate cash available in the company.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.