On September 1, Ziegler Corporation had 68,000 shares of $5 par value common stock, and $204,000 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:

Debit Retained Earnings $1,020,000; credit Common Stock Split Distributable $1,020,000.

Debit Retained Earnings $1,020,000; credit Common Stock $1,020,000.

Debit Retained Earnings $340,000; credit Common Stock $340,000.

Debit Retained Earnings $340,000; credit Stock Split Payable $340,000.

No entry is made for this transaction.