On December 1,2015,Arthur Inc.had 30,000 shares of $5 par value common stock issued and outstanding.The next day they declared a 50% stock dividend.The market value of the stock on that date was $9 per share.Which of the following is the correct journal entry to record this transaction?
A) debit Retained Earnings $270,000 and credit Cash $270,000
B) debit Retained Earnings $270,000,credit Common Stock $150,000,and credit Paid-In Capital in Excess of Par $120,000
C) debit Common Stock $75,000 and credit Cash $75000
D) debit Retained Earnings $75,000 and credit Common Stock Dividend Distributable $75,000
Correct Answer:
Verified
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