Answer:
See the answers and explanation below.
Explanation:
a. the necessary journal entries assuming a small (10%) stock dividend
<u>Date Details Dr ($) Cr ($)</u>
Sept. 1 Stock Dividends (16,000 * 36 * 10%) 57,600
Common Stock (16,000 * 7 *10%) 11,200
Additional Paid-in Capital - Common Stock 46.400
<u><em> To record a small (10%) stock dividend on common stock. .</em></u>
b. the necessary journal entries assuming a large (100%) stock dividend
<u>Date Details Dr ($) Cr ($)</u>
Sept. 1 Stock Dividends (16,000 * 7 * 100%) 112,000
Common Stock (16,000 * 7 *10%) 112,000
<u><em> To record a large (100%) stock dividend on common stock. .</em></u>
c. the necessary journal entries assuming a 2-for-1 stock split.
"No journal entry required"
Note: Although no journal entry is required here but the number of common stock will increase to 32,000 (i.e. 16,000 * 2 = 32.00).
