On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 60 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $27 on June 13.

Complete the below table to calculate the stock dividend.

Prepare a journal entry that summarizes the declaration and distribution of the stock dividend.

Below is the incorrect work and answer I had:

60,000,000 * 5%= 3,000,000 - common stock

3,000,000 * 27 = 81,000,000 - retained earnings

81,000,000 3,000,000 = 78,000,000 - paid in cap in exc of par

Number of outstanding shares 60,000,000

Stock dividend percentage 5%

Number of shares to be issued 3,000,000

X par value per share 27

Value of stock dividend 81,000,000

Retained earning - 81,000,000 - debit

Common stock 3,000,000 - credit

Paid in capital excess of par 78,000,000 - credit