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.$\text{'}$s common stock was $$3$ per share. The stock was issued on December $30.$

Requirements

Journalize the declaration and distribution of the stock dividend.

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

Requirement $1.$ Journalize the declaration and distribution of the stock dividend. $($Record debits first, then credits. Select the

explanation on the last line of the journal entry table.$)$

Start by journalizing the declaration of the stock dividend.

Now journalize the distribution of the stock dividend.

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

The number of shares of common stock outstanding after the dividend $=$