Morehead, Inc. is authorized to issue 200,000 shares of $1 par common stock. The company issued 77,000 shares at $3 per share. When the market price of common stock was $5 per share, Morehead, Inc. declared and distributed a 10% stock dividend. Later, Morehead, Inc. declared and paid a $0.25 per share cash dividend. 

Requirements 

1. Journalize the declaration and the distribution of the stock dividend. 

2. Journalize the declaration and the payment of the cash dividend.