Global Corporation had 47,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 20% stock dividend when the market value of each share was $24. The entry to record the dividend declaration is:

Multiple Choice

Debit Retained Earnings $225,600; credit Common Stock Dividend Distributable $188,000; credit Paid-In Capital in Excess of Par Value, Common Stock $37,600.

No entry is made until the stock is issued.

Debit Retained Earnings $225,600; credit Cash $225,600.

Debit Retained Earnings $188,000; credit Common Stock Dividend Distributable $188,000.

Debit Retained Earnings $225,600; credit Common Stock Dividend Distributable $225,600.