telly Inc. had 250,000 shares of 1 $ par value common stock issued and outstanding as of December 15, 2016. The company is authorized to issue 1,000,000 common shares. On december 15, 2016 , declared a 40% stock dividend when the market value for 's tellys common stock was 5$ per share. The stock was issued on December 30th

Requirements

1. Journalize the declaration and distribution of the stock dividend.

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