Sherry,Inc.had 140,000 shares of $5 par value common stock issued and outstanding as of December 15,2018.The company is authorized to issue 1,000,000 common shares.On December 15,2018,Sherry declared a 40% stock dividend when the market value for its common stock was $9 per share.The stock was issued on Dec.30.
Prepare the journal entries to record the declaration and distribution of the stock dividend.Explanations are not required.Compute the total shares after the dividend.

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The Answer of Sherry,Inc.had 140,000 shares of $5 par value common stock issued and outstanding as of December 15,2018.The company is authorized to issue 1,000,000 common shares.On December 15,2018,Sherry declared a 40% stock dividend when the market value for its common stock was $9 per share.The stock was issued on Dec.30.
Prepare the journal entries to record the declaration and distribution of the stock dividend.Explanations are not required.Compute the total shares after the dividend.