Nolan Jewelry Has 200,000 Shares of Common Stock Authorized and 50,000

Nolan Jewelry has 200,000 shares of common stock authorized and 50,000 shares of common stock issued and outstanding.The common stock has a par value of $5 per share.On March 1,2X13,the company declared and issued a two-for-one stock split.Assuming that the company issues 50,000 new shares and accounts for it as a 100% stock dividend,what journal entry would be made by Nolan Jewelry on March 1,2X13?

A) $\begin{array}{lcc}\text { Retained Earnings } & 250,000 & \\\text { Common Stock } & & 250,000 \\\end{array}$

B) $\begin{array}{lccc}\text { Additional Paid-in Capital } & 250,000 & \\\text { Common Stock } & & 250,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Cash } & 250,000 & \\\quad \text { Common Stock } & & 250,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Cash } & 250,000 & \\\quad \text { Additional Paid-in Capital } & & 250,000\end{array}$
E) No journal entry is necessary.