E14-2 The stockholders' equity for Jaworski, Inc., on September 30, 20X4-end of the com- pany's fiscal year-follows: Stockholders' Equity Common stock. $8 par. 100.000 shares authorized. 50.000 shares issued. Paid-in capital in excess of par-common. Retained earnings. Total stockholders' equity. $400,000 50,000 140,000 $590,000 On May 26, the market price of Jaworski's common stock was $16 per share and the company distributed a 10% stock dividend. Required 1. Journalize the distribution of the stock dividend. 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend.