The stockholders' equity for Dunelit, Inc., on December 31, 2011, follows:

On January 31, 2012, the market price of Dunelit's common stock was $17 per share and the company distributed a 20% 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, 450,000 shares authorized 50,000 550,000 $600,000 290,000 50,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders' Equity