The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following:

Common stock, $1 par; authorized, 8 million shares;
issued and outstanding, 3 million shares $ 3,000,000
Paid-in capital—excess of par 12,000,000
Retained earnings 14,000,000

On April 1, 2021, 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 $30 on April 1, 2021, and $40 on June 1, 2021.

Required:
Prepare the journal entry to record the declaration and distribution of the stock dividend on the declaration date.