Journalizing cash and stock dividends Painting Schools, 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, painting declared and distributed a 10% stock dividend. Later, declared and paid a $0.25 per share cash dividend.

Requirements

1. Journalize the declaration and the distribution of stock dividend

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