The stockholders’ equity for Blade, Inc., on December 31, 2009, follows:

On April 30, 2010, the market price of Blade’s common stock was $16 per share and the company distributed a 10% stock dividend.
Requirements

1. Journalize the declaration and distribution of the stock dividend.
2. Prepare the stockholders’ equity section of the balance sheet after the stock dividend.

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Paid-in Capital: Stockholders' Equity Common Stock, $1 par, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders' Equity $ 50,000 400,000 $450,000 120,000 $570,000