The board of directors declared a stock dividend

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A corporation had 13,500 shares of $5 par value common stock outstanding when the board of directors declared a stock dividend of 4,995 shares. At the time of the stock dividend, the market value per share was $19. The entry to record this dividend is:
Debit Common Stock Dividend Distributable $94,905; credit Retained Earnings $94,905.
No entry is needed.
Debit Retained Earnings $94,905; credit Common Stock Dividend Distributable $24,975; credit Paid-In Capital in Excess of Par Value, Common Stock $69,930.
Debit Retained Earnings $94,905; credit Common Stock Dividend Distributable $94,905.(i picked this on)
Debit Retained Earnings $24,975; credit Common Stock Dividend Distributable $24,975.

Reference no: EM13338009

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