ABC Inc. had 300,000 common shares outstanding on January 1. The company declared a 2% stock dividend on June 15 to all common shareholders of record as of June 20. The shares were issued on June 30. The market value of the shares was as follows:

• June 15, $2.25;
• June 20, $2.20;
• June 31, $2.30.

Which of the following components would be part of the companys entry on the date of declaration?

• A. Debit to dividends declared of $6,000
• B. Debit to dividends declared of $13,500
• C. Credit to common shares of $13,200
• D. Credit to common shares of $13,800
• E. Credit to retained earnings of $13,500