On January $1,2020,$ Needy, Inc., declared a $30\%$ stock dividend on its common stock when the market value of the common stock was $$20$ per share. Stockholders' equity before the stock dividend was declared consisted of:

Common stock, $$10$ par value, authorized $200,000$ shares; issued and outstanding $120,000$ shares $$1,200,000$

Additional paid$-$in capital on common stock

$150,000$

Retained earnings

$700,000$

Total stockholders' equity

$$2,050,000$

What was the effect on Needy's retained earnings as a result of the above transaction? $(2$pts$)$ Show the entry $($Date of declaration$/$date of payment$-5$pts$)$