The shareholders' equity of Danex Company on June 30, year 1, included the following: Common stock, $1 par; authorized, 8.05 million shares; $ 3,130,000 issued and outstanding, 3.13 million shares Paid-in capitalexcess of par 12,110,000 Retained earnings 14,100,000 On April 1, year 2, the board of directors of Danex declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Danex's common stock was $22 on April 1, year 2, and $45 on June 1, year 2. Required: Prepare the journal entry to record the declaration and distribution of the stock dividend on the declaration date