On January 4, 2018 Zabi Corporation declared a 10% common stock dividend to be distributed on January 31, 2018. On the date of declaration, Zabi Stockholder's Equity shows the following common stock related Information: On the date of declaration the company stock was trading at $10 per share.

Common stock information:

Common stock, S2 par value, 100,000 shares authorized 20,000 shares issued and 19,000 shares outstanding.

Required

Prepare the necessary Journal entries to record the declaration and distribution of stock dividend.