On January 1, 2016, Proven Technology Corporation's common shares account had a balance of $250,000, representing 25,000 shares issued at $10 per share. On May 15, 2016, 12,000 shares were issued for $150,000 cash. On August 31, 2016, a 10% stock dividend was declared and distributed. What is the balance in Common Shares appearing on the statement of shareholders' equity on December 31, 2016?

A.

$415,000

B.

$400,000

C.

$440,000

D.

$300,000

Following is the shareholders' equity section of the balance sheet of the Optimum Corporation:

Share capital:

Common shares, 100,000 shares authorized,

65,000 shares issued $650,000

Total share capital $650,000

Retained earnings 349,000

Total shareholders' equity $999,000

The common shares are currently selling for $15.50 per share.

The entry to record the declaration of a $0.75 per share cash dividend includes:

A.

credit to Common shares for $48,750

B.

debit to Retained Earnings for $48,750

C.

debit to Retained Earnings for $75,000

D.

debit to Dividends Payable for $48,750