Artistic Expression is authorized to issue an unlimited number of common shares. The company issued 71,000 shares at $4 per share, and all 71,000 shares are outstanding. When the market price of common shares was $12 per share, Artistic Expression declared and distributed a 20% stock dividend. Later, Artistic Expression declared and paid a $0.45 per share cash dividend.

Requirements

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

2. Journalize the declaration and the payment of the cash dividend.