Pottery Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 76,000 shares at $4 per share. When the market price of common stock was $6 per share, Pottery declared and distributed a 10% stock dividend. Later, Pottery declared and paid a $0.10 per share cash dividend.
1. Journalize the declaration and the distribution of the stock dividend.
2. Journalize the declaration and the payment of the cash dividend.