Recording and Reporting Stock Dividends and Stock Splits Bailey Corporation has the following stockholders equity account balances. Common stock, $12 par, 30,000 shares outstanding $360,000 Paid-in capital in excess of par 105,000 Retained earnings 750,000 Total stockholders equity $1,215,000 The corporation will triple the number of shares currently outstanding (to 90,000 shares) by taking one of the following separate actions. 1. Issue a 200% stock dividend ( 60,000 additional shares) and capitalize retained earnings on the basis of par value. 2. Issue a stock split (3-for-1 stock split; where three new shares are issued for each old share) by changing par value per share proportionately. Required a. Provide the journal entry that should be