This exercise continues the Lawlor Lawn Service, Inc., situation from previous problem of Chapter 12. On October 15, Lawlor Lawn Service declares and distributes a 10% stock dividend to all common shareholders of record on October 15 when the market price per common share is 5. Lawlor has 100 shares of common stock outstanding on the date of record.
Requirements
1. Is this a small or large stock dividend?
2. Journalize the entries related to the dividend.