At the end of the year, the records of Nortech Corporation provided the following selected and incomplete data:
Common shares, no par value Shares authorized, 236,000 Shares issued, ? ;issue price $15 per share; cash collected in full $ 2,197,500
Net earnings 135,000
Dividends declared and paid 73,000
Prior-period error, correction of an accounting error (a credit, net of income tax) 9,300
Retained earnings, beginning balance
Assume that the company declared a 100 percent stock dividend instead of the 100 percent stock split. The market price of the common share was $21 when the dividend was declared.
7-a. Does issuing a 100% stock dividend instead of a 100% stock split have any effects on shareholders’ equity components?
multiple choice
Yes
No
7-b. Prepare the journal entry for the declaration of 100 percent stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)