Pillsbury Company declares and distributes a 40% common stock dividend when it has 80,000 shares of $10 par common stock outstanding. The market price per share is $75 at the date of declaration. Which journal entry is prepared? Select one; one O A. debit Retained Earnings $2,400,000 and credit Common Stock $2,400,000 O B. debit Retained Earnings $2,400,000, credit Common Stock $320,000 and credit Paid-in Capital in Excess of Par- Common $2,080,000 OC. debit Retained Earnings $320,000 and credit Common Stock $320,000 O D. debit Retained Earnings $2,400,000, credit Paid-in Capital in Excess of Par-Common $2,400,000

Pillsbury Company declates and distributes a 40% common stock dividend when it has 80,000 shares of $10 par common stock outstanding. The market price per share is $75 at the date of declaration. Which journal entry is prepared? Select one A. debit Retained Earnings $2,400,000 and credit Common Stock $2,400,000 B. debit Retained Earnings $2,400,000, credit Common Stock $320,000 and credit Paid-in Capital in Excess of ParCommon $2,080,000 C. debit Retained Eamings $320,000 and credit Common Stock $320,000 D. debit Retained Earnings $2,400,000, credit Paid-in Capital in Excess of Par-Common $2,400,000