$($b$)$

Your answer is partially correct.

Prepare the journal entry to record $(1)$ the declaration and $(2)$ distribution of the stock dividend. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

No$.$ Date

$($b$)(1)$

$($b$)(2)$

Account Titles and Explanation

Retained Earnings

Paid$-$in Capital in Excess of Par $-$ Common Stock

Common Stock Dividend Distributable

Common Stock Dividend Distributable

Com

Debit

Retained Earnings

Paid$-$ Capital in Excess of Par $-$ Common Stock

Common Stock Dividend Distributable

Bramble Corporation has outstanding $3,023,000$ shares of common stock with a par value of $$10$ each. The balance in its Retained Earnings account at January $1,2025,$ was $$24,237,000,$ and it then had Paid$-$in Capital in Excess of Par$-$Common Stock of $$4,974,000.$ During $2025,$ the company's net income was $$4,744,000.$ A cash dividend of $$0\mathrm{.}60$ a share was declared on May $5,2025,$ and was paid June $30,2025,$ and a $6\%$ stock dividend was declared on November $30,2025,$ and distributed to stockholders of record at the close of business on December $31,2025.$ You have been asked to advise on the proper accounting treatment of the stock dividend.

The existing stock of the company is quoted on a national stock exchange. The market price of the stock has been as follows.

October $31,2025,$$$30$

November $30,2025,34$

December $31,2025,38$