Martial Arts Schools, Inc. is authorized to issue 200,000 shares of $4 par common stock. The company issued 78,000 shares at $6 per share. When the market price of common stock was $8 per share, Martial Arts Schools declared and distributed a 10% stock dividend. Later, Martial Arts Schools declared and paid a $0.60 per share cash dividend. Read the requirements. Requirement 1. Journalize the declaration and the distribution of the stock dividend. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First, journalize the declaration of the stock dividend. Date Accounts and Explanation Debit Credit Stock Dividends 62,400 Common Stock Dividend Distributable Paid-In Capital in Excess of ParCommon 31,200 31,200 Declared a 10% stock dividend. Now journalize the distribution of the stock dividend. Date Accounts and Explanation Debit Credit Common Stock Dividend Distributable 31,200 Common Stock-$4 Par Value 31,200 Issued 10% stock dividend. Requirement 2. Journalize the declaration and payment of the cash dividend. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the declaration of the cash dividend. Date Accounts and Explanation Debit Credit Cash Dividends 51,480 Dividends Payable-Common 51,480 Declared a cash dividend. Now journalize the distribution of the stock dividend. Date Accounts and Explanation Debit Credit Common Stock Dividend Distributable 31,200 Common Stock-$4 Par Value 31,200 Issued 10% stock dividend. Requirement 2. Journalize the declaration and payment of the cash dividend. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the declaration of the cash dividend. Date Accounts and Explanation Debit Credit Cash Dividends 51,480 Dividends Payable-Common 51,480 Declared a cash dividend. Now journalize the payment of the cash dividend. Dat Accounts and Explanation Debit Credit 7 Cash Cash Dividends Common Stock-$4 Par Value Common Stock Dividend Distributable Dividends Payable-Common Paid-In Capital from Treasury Stock Transactions Paid-In Capital in Excess of Par-Common Retained Earnings Stock Dividends Treasury Stock-Common alize