On June 1^st of 2020, a corporation had 108,000 issued shares of $30 par value common stock. In addition, the company

had 18,000 shares held in treasury. Later that day, the board of directors declared and distributed a 15% stock dividend

when the market value of each share was $45.

The appropriate journal entry to record this dividend declaration is:

A) Debit Credit

Retained Earnings or (dividends declared)	607,500
Common Stock		405,000
Paid-in Capital-Excess of Par, Common		202,500

B)

Retained Earnings or (dividends declared)	607,500
Common stock Dividend distributable		607,500

C)

Retained Earnings or (dividends declared)	607,500
Common Stock dividend distributable		405,000
Paid-in Capital-Excess of Par, Common		202,500

D) None of the above