A corporation had 50,000 shares of $20 par value common stock outstanding July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record this dividend is:
A. Debit retained earnings $135000;
Credit common stock dividend distributable $135000
B. Debit retained earnings $135000;
Credit cash $135000
C. Debit retained earnings $135000;
Credit common stock dividend distributable $100000;
Credit paid-in capital in excess of par value, common stock $35000.
D. Debit retained earnings $100000;
Credit common stock dividend distributable $100000
E. No entry is made until the stock is issued.