Soxlette Company has 700,000 shares authorized and 250,000 shares issued and outstanding of its $4 par value common stock. The stock is currently selling for $60 per share. If Soxlette Company declared and issued a 30% stock dividend, what journal entry would the company make?

Select one:

A. Retained Earnings 210,000 Common Stock 210,000

B. Retained Earnings 300,000 Common Stock 300,000

C. No journal entry is necessary.

D. Retained Earnings 4,500,000 Common Stock 4,500,000

E. Retained Earnings 18,000,000 Common Stock 18,000,000