Question

The journal entry to record the issuance of a stock dividend is which of the following?
A. Debit Common Stock Dividend Distributable (number of shares × par value common stock); credit Common Stock (same)
B. Debit Common Stock Dividends Distributable (number of shares × market value common stock); credit Common Stock (same)
C. Debit Retained Earnings (market value × number of shares); credit Common Stock Dividends Distributable (number of shares × par value); credit Paid-In Capital in Excess of Par-Stock Dividend
D. Debit Common Stock Dividend Distributable