On September 1, Ziegler Corporation had 58,000 shares of $5 par value common stock, and $174,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:

Multiple Choice

• Debit Retained Earnings $290,000; credit Stock Split Payable $290,000.

• Debit Retained Earnings $290,000; credit Common Stock $290,000.

• Debit Retained Earnings $870,000; credit Common Stock Split Distributable $870,000.

• Debit Retained Earnings $870,000; credit Common Stock $870,000.

• No entry is made for this transaction.