On September 1, Ziegler Corporation had 59,000 shares of $5 par value common stock, and $177,000 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:

• No entry is made for this transaction.

• Debit Retained Earnings $295,000; credit Common Stock $295,000.

• Debit Retained Earnings $885,000; credit Common Stock $885,000.

• Debit Retained Earnings $295,000; credit Stock Split Payable $295,000.

• Debit Retained Earnings $885,000; credit Common Stock Split Distributable $885,000.