On August 15, 2021, the Martinez Company board of directors declared a 10% stock dividend on common shares. The shares are to be distributed on September 15, 2021, to shareholders of record on September 1, 2021. The market price per share on the date of declaration was $27 while the market price on the date of distribution was $30. The common stock has a par of $6 per share and there were 1,000,000 shares outstanding prior to the declaration of the stock dividend. Required: Prepare any necessary journal entries to record the above transactions.