Pratt Company has the following equity balances: Common Stock, $1 par: $50,000 Additional Paid-in Capital: $300,000 Retained Earnings: $100,000 Total Equity: $450,000 The market price per share of Pratts stock is currently $8. Pratt Company has decided to declare and issue a 20% stock dividend.

The journal entry to record this transaction would include a

	Debit to Retained Earnings of $10,000
	Debit to Common Stock of $10,000
	Credit to Additional Paid-in-Capital of$70,000
	Credit to Retained Earnings of $80,000
	Credit to Retained Earnings of $10,000
	Credit to Common Stock of $80,000