Stock dividend

LO188

The shareholders equity of Core Technologies Company on June 30, 2015, included the following:

On April 1, 2016, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies common stock was $30 on April 1, 2016, and $40 on June 1, 2016.

Required:

Prepare the journal entry to record the declaration and distribution of the stock dividend on the declaration date.