Question $3$

The Shareholders' Equity category of Squigle Company's balance sheet as of January $1,2024,$ appeared as follows:

Common stock,

$40,000$ no par shares issued and outstanding $$500,000$

Retained earnings

Total shareholders' equity

$\frac{400,000}{\text{\$}900,000}$

The following transactions occurred during $2024$:

a$.$ Declared a $15\%$ stock dividend to common shareholders on January $15.$ At the time of the dividend, the common shares were selling for $$30$ per share. The stock dividend was to be issued to shareholders on February $14,2024.$

b$.$ Distributed the stock dividend to the shareholders on February $14,2024.$