Happy Holiday, Inc. has 100,000 shares of common stock issued and outstanding, with a par value of $0.01 per share. They distributed a 15% common stock dividend; market value is $12 per share. Which of the following is the correct journal entry to record the transaction?
A) Debit Retained earnings $180,000 and credit Paid-in capital $180,000.
B) Debit Retained earnings $180,000, credit Common stock $150 and credit Paid-in capital $179,850.
C) Debit Retained earnings $180,000 and credit Cash $180,000.
D) Debit Common stock $150, debit Paid-in capital $179,850 and credit Retained earnings $180,000.
Correct Answer:
Verified
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