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.