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On January 1, 2013, Mehrzad Co. Issued 10,000 shares of $1 par stock for total proceeds of $50,000. On October 31,2013 Mehrzad recorded a stock dividend of 5% when the market price of the stock was $8/ share. The consequence of this transaction would be: Reduce Retained Earnings by $4.000 and increase common stock at par by $500 Reduce Retained Earnings by $6,000 No effect on the account common stock at par Increase shares outstanding by 6,400 No effect on the account additional paid in capital