The shareholders' equity section of the Walsh Corporation at December $31$ of the prior year is presented below.

Walsh Company

Shareholders' Equity Section $-$ December $31($prior year$)$

Paid$-$in Capital:

Common stock, $$4\mathrm{.}00$ par; authorized, $6,000,000$ shares; issued and outstanding, $1,200,000$ shares $ $4,800,000$

Paid$-$in capital $-$ excess of par $5,760,000$

Total paid$-$in capital $ $10,560,000$

Retained earnings $36,960,000$

Total shareholders' equity $ $47,520,000$

On June $1$ of the current year, the board of directors of Walsh Corporation declared a $10\%$ stock dividend on common shares, to be distributed on September $1.$ The market price of Walsh's common stock was $$24\mathrm{.}00$ on June $1$ of the current year, and $$26\mathrm{.}00$ on June $1.$

Required:

Prepare the journal entries to record the declaration and distribution of the stock dividend.

Prepare the shareholders' equity section of the year$-$end balance sheet.

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