Alexander Pools Has 700,000 Shares Authorized and 250,000 Shares Issued $\begin{array} { c c c } \text { Retained Earnings } & 250,000 & \\\text { Common Stock } & & 250,000 \\\end{array}$

Alexander Pools 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 Alexander Pools declared and issued a three-for-one stock split by issuing 500,000 new shares and accounts for it as a stock dividend,what journal entry would be made?

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

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

C) $\begin{array}{lccc}\text { Retained Earnings } & 1,000,000 & \\\text { Common Stock } & & 1,000,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Retained Enrnings } & 2,000,000 & \\\text { Common Stock } & & 2,000,000\end{array}$
E) No journal entry is necessary.