Weeds Inc. has a balance of $10,000,000 in retained earnings and declares a 4% stock dividend on its 1,000,000 shares of $3 par value common stock. The current market value of the stock is $20 per share. What is the entry to record the transaction when the dividend shares are issued?

A)Stock Dividends 800,000 Common Stock Dividends Distributable 120,000 Paid-in Capital in Excess of Par Value 680,000

B)Stock Dividends 800,000 Common Stock 800,000

C)Stock Dividends 120,000 Common Stock Dividends Distributable 120,000

D)Common Stock Dividends Distributable 120,000 Common Stock 120,000