Eastline Corporation had 11,500 shares of $5 par value common stock outstanding when the board of directors declared a stock dividend of 3,795 shares. At the time of the stock dividend, the market value per share was $15. The entry to record this dividend is:

• No entry is needed.

• Debit Retained Earnings $56,925; credit Common Stock Dividend Distributable $18,975; credit Paid-In Capital in Excess of Par Value, Common Stock $37,950.

• Debit Retained Earnings $18,975; credit Common Stock Dividend Distributable $18,975.

• Debit Common Stock Dividend Distributable $56,925; credit Retained Earnings $56,925.

• Debit Retained Earnings $56,925; credit Common Stock Dividend Distributable $56,925.