A Corporation Had 50,000 Shares of $20 Par Value Common

A corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record this dividend is:

A) $\begin{array}{|c|r|r|}\hline \text { Retained Earnings } & 135,000 & \\\hline \text { Common Stock Dividend Distributable } & & 135,000 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Retained Earnings } & 135,000 & \\\hline \text { Cash } & & 135,000 \\\hline\end{array}$
C) $\begin{array}{|c|r|r|}\hline \text { Retained Earnings } & 135,000 & \\\hline \text { Common Stock Dividend Distributable } & & 100,000 \\\hline \begin{array}{c}\text { Paid-In Capital in Excess of Par Value, } \\\text { Common Stock }\end{array} & & 35,000 \\\hline\end{array}$
D) $\begin{array}{|c|r|r|}\hline \text { Retained Earnings } & 100,000 & \\\hline \text { Common Stock Dividend Distributable } & & 100,000 \\\hline\end{array}$
E) No entry is made until the stock is issued