Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 625,000 shares of $15 par value common stock. As of December 31, Year 3, Gilligan's stockholders' equity accounts report the following balances:

Common stock, $15 par, 625,000 shares authorized, 62,500 shares issued and outstanding	$	937,500
Paid-in capital in excess of par - Common		125,000
				$	1,062,500
Retained earnings					620,000
Total stockholders' Equity				$	1,682,500

At the end of Year 3, Gilligan decides to issue a 8% stock dividend. At the time of issue, the market price of the stock was $44 per share.

Which of the following journal entries will be used to record the stock dividend?

Multiple Choice

• Retained earnings	220,000
  Common stock		75,000
  Paid-in capital in excess of par value - Common		145,000

• Retained earnings	75,000
  Common stock		75,000

• Common stock	150,000
  Retained earnings		75,000
  Paid-in capital in excess of par value - Common		75,000

• Dividends	134,600
  Cash		134,600