Dolanski Company declares and distributes a 40% common stock dividend when it has 80,000 shares of $10 par common stock outstanding. The market price per share is $50 at the date of declaration. Which journal entry is prepared? O A. debit Retained Earnings $1,600,000, credit Common Stock $320,000 and credit Paid - in Capital in Excess of Par-Common $1,280,000 OB. debit Retained Eamings $1,600,000 and credit Common Stock $1,600,000 OC. debit Retained Earnings $320,000 and credit Common Stock $320,000 O D. debit Retained Earnings $1,600,000, credit Paid - in Capital in Excess of Par-Common $500,000

Dolanski Compary deciares and distrioules a 40% common slock dividend when it has 80,000 shares of $10 pax common stock oulstanding The market price per ahare is $50 at the date of declaration. Which joumat entry is prepared? A. debt Retaned Eamings $1,000,000, cresa Common $100k$320,000 and coedt Paid-in Captal in Excess of Par-Common $1,280,000 C. debit Retaned Eamings $320,000 and cosit Common 510ck$320,000 D. debt Retained Eamings $1,600,000, credt Paid - h Captal in Exass of Par-Common $500,000