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Question - Self-Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $5 per share. When the market price of common stock was $7 per share, Self-Defense Schools declared and distributed a 14% stock dividend. Later, Self-Defense schools declared and paid a $0.70 per share cash dividend.
Required -
1. Journalize the declaration and the distribution of the stock dividend common stock $20,440.
2. Journalize the declaration and the payment of the cash dividend.
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