Landless Corporation currently has 120,000 shares outstanding of $1 par value common stock. The stock was originally issued for $12 per share. On March 15, the board of directors declares and distributes a 10% stock dividend when the stock is selling for $16 per share. Prepare the journal entry to record the stock dividend. Solution Retained earnings 192000 =120000*10%*16 Common stock 12000 Paid-in capital in excess of par 180000 To record the stock dividend.