Problem 15-11 Kingbird Corporation has outstanding 2,973,000 shares with common stock of a par value of $10 each. The balance in its Retained Earnings account at January 1, 2017, was $23,787,000, and it then had Paid-in Capital in Excess of Par-Common Stock of $5,044,000. During 2017, the company's net income was $4,693,000. A cash dividend of $0.60 a share was declared on May 5, 2017, and was paid June 30, 2017, and a 6% stock dividend was declared on November 30, 2017, and distributed to stockholders of record at the close of business on December 31, 2017. You have been asked to advise on the proper accounting treatment of the stock dividend The existing stock of the company is quoted on a national stock exchange. The market price of the stock has been as follows October 31, 2017 November 30, 2017 December 31, 2017 $36 $40 Your answer is partially correct. Try again (a) Prepare the journal entry to record (1) the declaration and (2) payment of the cash dividend (b) Prepare the journal entry to record (1) the declaration and (2) distribution of the stock dividend (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit a ()T May 5Retained Earnings 1783800 Dividends Payable 1783800 (a) (2) T June 30 |Dividends Payable 1783800 Cash 1783800 (b) (1)T Nov. 30Retained Earnings 6421680 Common Stock Dividend Distributable 1783800 Paid-in Capital in Excess of Par - Common Stock 4637880