Soxlette Company Has 700,000 Shares Authorized and 250,000 Shares Issued $\begin{array} { l l l } \text { Retained Earnings } & 210,600 & \\\text { Common Stock } & & 210,000 \\\end{array}$

Soxlette Company has 700,000 shares authorized and 250,000 shares issued and outstanding of its $4 par value common stock.The stock is currently selling for $60 per share.If Soxlette Company declared and issued a 30% stock dividend,what journal entry would the company make?

A) $\begin{array} { l l l } \text { Retained Earnings } & 210,600 & \\\text { Common Stock } & & 210,000 \\\end{array}$

B) $\begin{array}{lccc}\text { Retained Earning } & 300,000 & \\\text { Common Stock } & & 300,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Retained Earnings } & 4,500,000 & \\\text { Common Stock } & & 4,500,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Retained Earnings } & 18,000,000 & \\\text { Common Stock } & & 18,000,000\end{array}$
E) No journal entry is necessary.