The shareholders' equity section of the Walsh Corporation at December $31,2022$ is presented below.

Common shares authorized $6,000,000$

Par value per common share $$4\mathrm{.}00$

Walsh Company

Shareholders' Equity Section

December $31,2022$

Paid$-$in Capital:

Common stock, $$4\mathrm{.}00$ par; authorized, $6,000,000$ shares; issued and outstanding, $1,200,000$ shares $$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 $1,2023,$ the board of directors of Walsh Corporation declared a $10\%$ stock dividend on common shares, to be distributed on September $1,2023.$ The market price of Walsh's common stock was $$24\mathrm{.}00$ on June $1,2023,$ and $$26\mathrm{.}00$ on September $1,2023.$

Stock dividend percentage $10\%$

Market price of Walsh common stock on June $1,2023$ $$24\mathrm{.}00$

Market price of Walsh common stock on September $1,2023$ $$26\mathrm{.}00$

Prepare the appropriate journal entries to record each of the following transactions:

$1.$ On June $1,2023$ the board of directors declared a $10\%$ stock dividend on common shares, to be distributed on September $1,2023.$ Record the declaration.

Date General Journal Debit Credit

Jun. $1$ Retained earnings

Common stock dividends distributable

Paid$-$in capital $-$ excess of par

$2.$ On September $1,2023,$ the shares were distributed. Record the distribution of the stock dividend.

Date General Journal Debit Credit

Sep. $1$ Common stock dividends distributable

Common stock $0$

$3)$ Prepare the shareholders' equity section of the balance sheet for the Walsh Company at December $31,2023.$ Net income for the year was $$11,088,000$ and dividends totaled $$3,880,800.$

Net income for the year ended December $31,2023$ $$11,088,000$

Dividends paid in $2023$ $$3,880,800$

Walsh Company

Shareholders' Equity Section

December $31$

Paid$-$in Capital:

Common stock

Paid$-$in capital $-$ excess of par

Total paid$-$in capital

Retained earnings

Total shareholders' equity