The stockholders' equity for Lakeside Marina, Inc., on December 31, 2015, follows:

On January 31, 2016, the market price of Lakeside Marina's common stock was $20 per share and the company distributed a 10 percent stock dividend.
Requirements
1. Journalize the declaration and distribution of the stock dividend.
2. Prepare the stockholders' equity section of the balance sheet after the stock dividend?

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Stockholders' Equity Paid-in Capital: Common Stock, $1 par, 400,000 shares authorized, 40,000 shares issued and outstanding Paid-in Capital in Excess of Par-Common Total Paid-in Capital Retained Earnings Total Stockholders' Equity $ 40,000 400,000 $440,000 150,000 $590,000