PREPARE THE FOLLOWING PAYCHECK ENTRIES:

Related to stock dividends:

Mercado, Inc. has the following balances in its capital account. Common Stock: $300,000 at an even value of $50.00 Paid in Capital: 62,500 Retained Earnings: 471,000 The Board of Directors declared a 1% stock dividend when the market price of the shares was $76.00 per share.

Required:

Make the day's wage entries for the record: 1. Dividend declaration. 2. The issuance of the stock certificate.