Dutta Corp. has outstanding 70,000 shares of $5 par value common stock. At year-end, the company declares and issues a 4% common stock dividend when the market price of the stock is $21 per share.

a. Using the financial statement effects template, illustrate the effects of this dividend declaration and payment.

b. Prepare the journal entries for the stock dividend declaration and payment.

c. Post the journal entries from b to the related T-accounts.