Exercise - Stock dividend
The shareholders' equity of Core Technologies Company on June 30, 2010, included the following:
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Common stock, $1 par: authorized, 8.12 million shares; issued and outstanding. 3.19 million shares
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$ 3,190,000
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Paid-in capital-excess of par
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12,160,000
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Retained earnings
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14,060,000
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On April 1, 2011, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies' common stock was $27 on April 1, 2011, and $48 on June 1, 2011.
Required: Prepare the journal entry to record the distribution of the stock dividend on the declaration date.