The stockholders’ equity of Pondside Occupational Therapy, Inc., on December 31

Price: $2.99


The stockholders’ equity of Pondside Occupational Therapy, Inc., on December 31,
2011, follows:

Paid-in capital:
Common stock, $1 par, 1,250 shares authorized,
530 issued .......................................................... 530
Paid–in capital in excess of par—common ............ 2120
Total paid-in capital ...........................................2650
 Retained earnings..........................................................121,000
Total stockholders’ equity............................................. $ 123,650

n April 30, 2012, the market price of Pondside’s common stock was $11 per share and the company distributed a 10% stock dividend.
Requirements
1. Journalize the distribution of the stock dividend.
2. Prepare the stockholders’ equity section of the balance sheet after the stock dividend.