On September 1, a corporation had 50,000 shares of $8 par value common stock and $1,000,000 of retained earnings. On that date, when the market price of the stock is $24 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:

A) No entry is made for this transaction.

B)Retained Earnings debit 1,200,000; credit stock split payable credit 1,200,000

C)Retained earnings debit 400,000; credit Common stock 400,000

D) Retained earnings debit 1,200,000; credit common stock 1,200,000

E) Retined earnings debit 400,000; Common stock split distributable credit 400,000