The stockholders' equity of Lakeside Occupational Therapy, Inc. on December

The stockholders' equity of Lakeside Occupational Therapy, Inc. on December 31, 2017, follows:
Stockholders' Equity Paid-In Capital: Common Stock-$1 Par Value; 1,200 shares authorized, 400 shares issued and outstand

On April 30, 2018, the market price of Lakeside's common stock was $16 per share and the company declared a 13% 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 as of May 31, 2018.
Assume Retained Earnings are $120,000 on April 30, 2018, before the stock dividend, and the only change made to Retained Earnings before preparing the balance sheet was closing the Stock Dividends account.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...