Global Corporation Had 50,000 Shares of $20 Par Value Common

Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record the dividend declaration is:

A) No entry is made until the stock is issued.
B) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $135,000.
C) Debit Retained Earnings $135,000; credit Cash $135,000.
D) Debit Retained Earnings $100,000; credit Common Stock Dividend Distributable $100,000.
E) Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $100,000; credit Paid-In Capital in Excess of Par Value, Common Stock $35,000.