On June 30, 2008, the Stockholders’ Equity section of Comet Corporation's balance sheet was as follows:

On July 1, 2008, Comet’s board of directors declared a 5% stock dividend on common stock to be distributed on August 10, 2008 to shareholders of record on July 31, 2008. The market price of Comet’s common stock on each of these dates was as follows:

Required:
Prepare the general journal entry to record the stock dividend on Comet’s books.

Transcribed Image Text:

Common stock, par value $25; authorized 500,000 shares; issued and outstanding 300,000 shares Additional paid-in capital Retained earnings $7,500,000 1,400,000 1,890,000