The stockholders' equity section of Carson Company's December 31, 1997, balance sheet follows:

On July 15, 1998, the board of directors declared a cash dividend of $12 per share, which was paid on August 1, 1998. On December 1, 1998, the board declared a stock dividend of 10%, and the shares were issued on December 15, 1998. Market value of the stock was $144 on December 1 and $168 on December 15. Prepare journal entries for these dividend transactions.

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Stockholders' equity: Paid-in-capital: Common stock-$120 par value; authorized, 2,000 shares; issued and outstanding, 1,000 shares. Paid-in capital in excess of par value Total paid-in capital Retained earnings Total stockholders' equity $120,000 6,000 $126,000 48,000 $174,000