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.
|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|
|Common stock dividends distributable||300000|
|Paid-in capital—Excess of par||8700000|
|1-Jun||Common stock dividends distributable||300000|
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