E12-14 On January 1, 2008, Abdella Corporation had $1,000,000 of common stock

Price: $1.99


On January 1, 2008, Abdella Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000.The company issued 60,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year.

Instructions
Journalize the declaration of a 15% stock dividend on December 10, 2008, for the following
independent assumptions.
1. Par value is $10, and market value is $18.
2. Par value is $5, and market value is $20.