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The shareholders' equity section of the Walsh Corporation at December 3 1 of the prior year is presented below. Walsh Company Shareholders' Equity Section -

The shareholders' equity section of the Walsh Corporation at December 31 of the prior year is presented below.
Walsh Company
Shareholders' Equity Section - December 31(prior year)
Paid-in Capital:
Common stock, $4.00 par; authorized, 6,000,000 shares; issued and outstanding, 1,200,000 shares $ 4,800,000
Paid-in capital - excess of par 5,760,000
Total paid-in capital $ 10,560,000
Retained earnings 36,960,000
Total shareholders' equity $ 47,520,000
On June 1 of the current year, the board of directors of Walsh Corporation declared a 10% stock dividend on common shares, to be distributed on September 1. The market price of Walsh's common stock was $24.00 on June 1 of the current year, and $26.00 on June 1.
Required:
Prepare the journal entries to record the declaration and distribution of the stock dividend.
Prepare the shareholders' equity section of the year-end balance sheet.

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