Exercise 18-19 (Algo) Stock dividend [LO18-8]

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

Common stock, $1 par; authorized, 6 million shares; issued and outstanding, 2 million shares	$ 2,000,000
Paid-in capitalexcess of par	8,000,000
Retained earnings	21,000,000

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 $38 on April 1, 2024, and $48 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.