On January 1, 2020, Cullumber Corporation had $1,125,000 ofcommon stock outstanding that was issued...

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On January 1, 2020, Cullumber Corporation had $1,125,000 ofcommon stock outstanding that was issued at par. It also hadretained earnings of $746,500. The company issued 40,000 shares ofcommon stock at par on July 1 and earned net income of $410,000 forthe year. Journalize the declaration of a 16% stock dividend onDecember 10, 2020, for the following independent assumptions. a.Par value is $10, and market price is $19. b. Par value is $5, andmarket price is $20.

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In: AccountingOn January 1, 2020, Cullumber Corporation had $1,125,000 ofcommon stock outstanding that was issued at...On January 1, 2020, Cullumber Corporation had $1,125,000 ofcommon stock outstanding that was issued at par. It also hadretained earnings of $746,500. The company issued 40,000 shares ofcommon stock at par on July 1 and earned net income of $410,000 forthe year. Journalize the declaration of a 16% stock dividend onDecember 10, 2020, for the following independent assumptions. a.Par value is $10, and market price is $19. b. Par value is $5, andmarket price is $20.