St Satm Problem 15-11 Earnhart Corporation has outstanding 3,000,000 shares with common stock of a par vakue of $10 each The balance in its Retained E armings account at lanuary 1, 2017, was $24,000,0o0, and it then had Paid in Capital in Excess of Par-Common Stock of $5,000,000. During 2017, the company's net was declared on Novenber 30, 2017, and distributed to stockholders The edsting steck of the company is quoted on a national stock exchange. The market price of the stock has been as income was $4,700,000. A cash dividend of $0.60 a share was dedlared on May 5, 2017, and was paid June 30, of record at the dese of business on December 31, 2017. You have been asked to advise on the proper accounting treatment of the stock dividend. 2017, and a 6% stock di id d October 31, 2017 November 30, 2017 December 31, 2017 $31 $34 $38 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 receed (1) the declaration and (2) distribution of the stock dividend. are automatically indented when amoumt is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Date Account Titles and Explanation (a) (1) May Earnings 5 (a) (2) TJune 30Dividends Payable (b) ( 1 )TNov. 30 . Retained Earnings Common Stock Paid in Capital in Excess of Par Common Stock Your answer is partially correct. Try again Prepare tho tockholders' equty section induling scheades of retained earnings and additional paid in cotal) of the bee sheet of tareat Corporation (ist Rems thet lecrease retained earnings first.) the vea sion the tns a ae hroma-man Excess of fair value over par value of common stock v dditional Paid in Capital, December 3