Dolanski Company Declares and Distributes a 50% Common Stock Dividend

Dolanski Company declares and distributes a 50% common stock dividend when it has 20,000 shares of $10 par common stock outstanding.The market price per share is $50 at the date of declaration.What journal entry is prepared?

A) debit Retained Earnings $500,000,credit Common Stock $100,000 and credit Paid-in Capital in Excess of Par-Common $400,000
B) debit Retained Earnings $500,000,credit Paid-in Capital in Excess of Par-Common $500,000
C) debit Retained Earnings $500,000 and credit Common Stock $500,000
D) debit Retained Earnings $100,000 and credit Common Stock $100,000