Reference no: EM13937631
On September 1, Ziegler Corporation had 71,000 shares of $5 par value common stock, and $213,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:
A) Debit Retained Earnings $355,000; credit Common Stock $355,000.
B) No entry is made for this transaction.
C) Debit Retained Earnings $1,065,000; credit Common Stock $1,065,000.
D) Debit Retained Earnings $1,065,000; credit Common Stock Split Distributable $1,065,000.
E) Debit Retained Earnings $355,000; credit Stock Split Payable $355,000.
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