This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 11-45 of...

This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 11-45 of Chapter 11. On July 15, Sherman Lawn Service declares and distributes a 5% stock dividend to all common shareholders of record on July 15 when the marker price per common share is $4.

Requirements

1. Is this a small or large stock dividend?

2. Journalize the entries related to the dividend.