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A company has 138,000 shares of $5 par value common stock outstanding. The company declares a 35% stock dividend on November 1 when the stock's market value is $56 per share Prepare the journal entry for declaration of the stock dividend. Journal entry worksheet Record the declaration of a 35% stock dividend. Notei Enter debits before credits. Explanation: The log entry for the stock dividend declaration entry is as follows: Date: November 1 Debit: Distributable share dividend $2,716,800 (this represents the value of the shares to be distributed) Credit: Distributable Common Share Dividends $691,500 (this represents the par value of the shares to be distributed) Credit: Paid-in capital in excess of the par value of $2,025,300 (this represents the excess value of the shares to be distributed) Explanation Please refer to solution in this step