Williamson Company declared and distributed a 10% stock dividend when it had 200,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $60 per share when the dividend was declared. The journal entry to record the stock dividend would include a credit to:

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The stock dividend is 10% of 200,000 shares, which is 20,000 shares. The market value of these shares is $60 each, totaling $1,200,000. The par value of the shares is $1, totaling $20,000. The excess over par ($1,200,000 - $20,000) is credited to Paid-in Capital in Excess of Par-Common.

Williamson Company Declared and Distributed a 10% Stock Dividend When