The stockholders equity of Pondside Occupational Therapy Inc on December
The stockholders’ equity of Pondside Occupational Therapy, Inc. on December 31, 2013, follows:
Stockholders’ Equity
Paid- In Capital:
Common Stock—$ 1 Par Value; 1,250 shares authorized,
530 shares issued and outstanding ............ $ 530
Paid- In Capital in Excess of Par— Common ......... 2,120
Total Paid- In Capital ................... 2650
Retained Earnings .................... 121,000
Total Stockholders’ Equity ............... $123,650
On April 30, 2014, the market price of Pondside’s common stock was $ 11 per share and the company declared a 10% stock dividend. The stock was distributed on May 15.

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. Assume Retained Earnings are $ 121,000 on April 30, 2014, before the stock dividend.

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