On December 1,2019,Murphy,Inc.had 35,000 shares of $7 par value common stock issued and outstanding.The next day it declared a 50% stock dividend.The market value of the stock on that date was $15 per share.Which of the following is the correct journal entry to record this transaction?
A) debit Stock Dividends $525,000 and credit Cash $525,000
B) debit Stock Dividends $525,000, credit Common Stock $245,000, and credit Paid-In Capital in Excess of Par $280,000
C) debit Common Stock $122,500 and credit Cash $122,500
D) debit Stock Dividends $122,500 and credit Common Stock Dividend Distributable $122,500
Correct Answer:
Verified
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