A corporation had 25,000 shares of $5 par value common stock outstanding on August 1. Later that day, the board of directors declared a 15% stock dividend when the market value of each share was $27. The dividend is to be paid on September 15th to the shareholders of record on August 31st. The entry to record this dividend on the date of declaration is?

Debit Retained Earnings for $18,750; Credit Cash for $18,750

Debit Retained Earnings for $101,250; Credit Common Stock Dividend Distributable for $18,750; and Credit Paid In Capital in Excess of Par - Common for $82,500

Debit Retained Earnings for $18,750; Credit Common Stock Dividend Distributable for $18,750

Debit Common Stock Dividend Distributable for $101,250; Credit Retained Earnings for $101,250

Debit Retained Earnings for $101,250; Credit Common Stock Dividend Distributable for $101,250