The stockholders’ equity for Dairy Place Drive-Ins (DP) on December 31, 2012, follows:On April 16, 2013, the market price of DP common stock was $20 per share. Assume DP distributed an 18% stock dividend on this date.Requirements1. Journalize the distribution of the stock dividend.2. Prepare the stockholders’ equity section of the balance sheet after the stock dividend.3. Why is total stockholders’ equity unchanged by the stock dividend?4. Suppose DP had a cash balance of $580,000 on April 17, 2013. What is the maximum amount of cash dividends DP can declare?
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The stockholders equity for Dairy Place Drive Ins DP on Decem

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