Grouper Corporation has outstanding 250,000 common shares that were issued at $8 per share. The balances at January 1, 2020, were $23 million in its Retained Earnings account; $4.50 million in its Contributed Surplus account; and $1.10 million in its Accumulated Other Comprehensive Income account. During 2020, Grouper's net income was $3,200,000 and comprehensive income was $3,150,000. A cash dividend of $0.60 per share was declared and paid on June 30, 2020, and a 4% stock dividend was declared at the fair value of the shares and distributed to shareholders of record at the close of business on December 31, 2020. You have been asked to give advice on how to properly account for the stock dividend. The existing company shares are traded on a national stock exchange. The shares' market price per share has been as follows Oct. 31, 2020 $29 Nov. 30, 2020 34 Dec. 31, 2020 40 Average price over the two-month period 35 Prepare a journal entry to record the cash dividend.