Exercise 18-19 Stock dividend [LO18-8]

The shareholders equity of Core Technologies Company on June 30, 2017, included the following:

Common stock, $1 par; authorized, 9 million shares; issued and outstanding, 4 million shares	$	4,000,000
Paid-in capitalexcess of par		16,000,000
Retained earnings		22,000,000

On April 1, 2018, 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 $40 on April 1, 2018, and $50 on June 1, 2018. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.