Elements Corporation reflects the following capital structure as of January 1: 10,000 Preferred Stock, 5%, issued and outstanding; par value of $10. 10,000 Common shares, issued and outstanding; par value of $1. The following transactions were completed during the month of January:

January 15: A cash dividend of 30 cents ($.30) per share for common stock and 60 cents ($.60) per share for preferred stock was declared. The entry to record this transaction is as follows: a. Retained Earnings 9,000 Preferred Stock Dividends Payable 6,000 Common Stock Dividends Payable 3,000

b. Retained Earnings 8,610 Dividends Payable 8,610

c. Retained Earnings 9,000 Dividends Distributable 9,000

d. Dividends Payable 21,000 Retained Earnings 21,000

January 20: A dividend was declared for distribution in shares equal to 10% of the outstanding common shares. The market price of the common stock was $9 per share on the date the dividend was declared. The entry to record the declaration of the dividend is: a. Retained Earnings 12,000 Common Stock Dividend Distributable 12,000

b. Retained Earnings 9,000 Common Stock Dividend Distributable 1,000 Paid in Capital in excess of Par Value 8,000

c. Retained Earnings 9,000 Common Stock Dividend Distributable 9,000

d. Retained Earnings 6,500 Common Stock Dividend Distributable 5,000 Paid in Capital in excess of Par Value 1,500

January 31: Stock certificates for the dividend declared on January 20 were distributed. a. Distributable common stock dividends 6,700. Common stock, par value 6,700

b. Dividends on distributable common stock 8,710 Ordinary shares, par value 8,710

c. Dividends on distributable common stock 6,500 Common stock, par value 6,500

d. Dividends on common stock, distributable 1,000 Common stock, par value 1,000