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The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following: Common stock,...

The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following: Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares $ 3,000,000 Paid-in capital—excess of par 12,000,000 Retained earnings 14,000,000 On April 1, 2018, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $30 on April 1, 2018, and $40 on June 1, 2018. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.

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Answer #1
Number of outstanding shares 3000000
Stock dividend percentage 10%
Number of shares to be issued 300000
x Market Value April 1 30
Value of stock dividend 9000000
1-Apr Retained earnings 9000000
     Common stock dividends distributable 300000
     Paid-in capital—Excess of par 8700000
1-Jun Common stock dividends distributable 300000
         Common stock 300000
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