Exercise $18-19($Algo$)$ Stock dividend $[$LO$18-8]$

The shareholders' equity of Core Technologies Company on June $30,2023,$ included the following:

Common stock, $$1$ par; authorized, $7$ million shares;

issued and outstanding, $2$ million shares

Paid$-$in capital$-$excess of par

Retained earnings

$$2,000,000$

$8,000,000$

$20,000,000$

On April $1,2024,$ 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 $$36$ on April $1,2024,$ and $$46$ on June $1,2024.$

Required:

Prepare the journal entries to record the declaration and distribution of the stock dividend.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the declaration of the stock dividend.

Note: Enter debits before credits.