Journalizing a small stock dividend Element Water Sports has 13,000 shares of $1 par value common stock outstanding. Element distributes a 5% stock dividend when the market value of its stock is $15 per share. Requirements Journalize Element’s declaration of the stock dividend on August 15 and distribution on August 31. What is the overall effect of the stock dividend on Element’s total assets? What is the overall effect on total stockholders’ equity?

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