Hoffert Enterprises Has 500,000 Shares of Common Stock Authorized and 100,000

Hoffert Enterprises has 500,000 shares of common stock authorized and 100,000 shares of common stock issued and outstanding.The common stock has a par value of $6 per share.On February 1,2X13,the company declared and issued a two-for-one stock split.Assuming that the company exchanges 200,000 new $3 par value shares for the old shares,what journal entry would be made by Hoffert Enterprises on February 1,2X13?

A) $\begin{array} { l l l } \text { Cash } & 600,000 & \\\text { Common Stock } & & 600,000\\\end{array}$

B) $\begin{array}{lccc}\text { Cash } & 3,000,000 & \\\text { Common Stcck } & & 3,000,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Common Stcck } & 600,000 & \\\text { Additional Paid-in Capital } & & 600,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Retained Earnings } & 1,200,000 & \\\text { Common Stock } & & 1,200,000\end{array}$
E) No journal entry is necessary.