A Corporation Had 20,000 Shares of $10 Par Value Common

A corporation had 20,000 shares of $10 par value common stock outstanding on January 10. Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40. The entry to record this dividend is:

A) $\begin{array}{|c|r|r|}\hline \text { Retained Earnings } & 60,000 & \\\hline \text { Common Stock Dividend Distributable } & & 60,000 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Retained Earnings } & 60,000 & \\\hline \text { Cash } & & 60,000 \\\hline\end{array}$
C) $\begin{array}{|c|c|c|}\hline \text { Retained Earnings } & 240,000 & \\\hline \text { Common Stock Dividend Distributable } & & 60,000 \\\hline \begin{array}{l}\text { Paid-In Capital in Excess of Par Value, } \\\text { Common Stock }\end{array} & & 180,000 \\\hline\end{array}$
D) $\begin{array}{|c|r|r|}\hline \text { Retained Earnings } & 240,000 & \\\hline \text { Common Stock Dividend Distributable } & & 240,000 \\\hline\end{array}$
E) No entry is made until the stock is issued