Sherry, Inc. had 140,000 shares of $5 par value common stock issued and outstanding as of December 15, 2018. The company is authorized to issue 1,000,000 common shares. On December 15, 2018, Sherry declared a 40% stock dividend when the market value for its common stock was $9 per share. The stock was issued on Dec. 30.

Prepare the journal entries to record the declaration and distribution of the stock dividend. Explanations are not required. Compute the total shares after the dividend.