Rafael, Inc. had 310,000 shares of $1 par value common stock issued and outstanding as of December 15, 2025. The company is authorized to issue 1,400,000 common shares. On December 15, 2025, Rafael, Inc. declared a 45% stock dividend when the market value for Rafael, Inc.’s common stock was $3 per share. The stock was issued on December 30. 

Requirements 

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

2. How many shares of common stock are outstanding after the dividend?