Exercise 18-19 Stock dividend [LO18-8]

The shareholders equity of Core Technologies Company on June 30, 2015, included the following:

Common stock, $1 par; authorized, 9 million shares; issued and outstanding, 3 million shares

$

3,000,000

Paid-in capitalexcess of par

12,000,000

Retained earnings

12,000,000

On April 1, 2016, 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 $28 on April 1, 2016, and $38 on June 1, 2016.

Required:

Complete the below table to calculate the stock dividend.

Stock Dividend
Number of outstanding shares
Stock dividend percentage
Number of shares to be issued
x Par Value per share
Value of stock dividend	$0

2.

Prepare the journal entries to record the declaration and distribution of the stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

April 01, 2016: Record the declaration of the stock dividend.

June 01, 2016: Record the distribution of the stock dividend.