Wildhorse Corporation has outstanding 2,994,000 shares with common stock of a par value of $10 each. The balance in its Retained Earnings account at January 1, 2017, was $23,885,000, and it then had Paid-in Capital in Excess of Par-Common Stock of $5,046,000. During 2017, the company's net income was $4,685,000. A cash dividend of $0.60 a share was declared on May 5, 2017, and was paid June 30, 2017, and a 6% stock dividend was declared on November 30, 2017, and distributed to stockholders of record at the close of business on December 31, 2017. You have been asked to advise on the proper accounting treatment of the stock dividend. The existing stock of the company is quoted on a national stock exchange. The market price of the stock has been as follows. October 31, 2017 November 30, 2017 December 31, 2017 $30 $34 (a and b) ZYour answer has been saved and sent for grading. See Gradebook for score details. (a) Prepare the journal entry to record (1) the declaration and (2) payment of the cash dividend. (b) Prepare the journal entry to record (1) the declaration and (2) distribution of the stock dividend. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter o for the amounts.) No. Date Account Titles and Explanation Debit Credit (a)(1) May 5 A Retained Earnings 1796400 Dividends Payable 1796400 (a) (2) June 30 Dividends Payable 1796400 Cash 1796400 (b) (1) Nov. 30 + Common Stock Dividend Distributable 6107760 Common Stock 1796400 Paid-in Capital in Excess of Par - Common Stock 4311360 (b) (2) Dec. 31 Retained Earnings 6107760 Common Stock Dividend Distributable 6107760 Prepare the stockholders' equity section (including schedules of retained earnings and additional paid-in capital) of the balance sheet of Wildhorse Corporation for the year 2017 on the basis of the foregoing information. (List items that increase retained earnings first.) Schedule of Additional Paid-in Capital Statement of Retained Earnings WILDHORSE CORPORATION Stockholders' Equity Common Stock Additional Paid-in Capital, January 1