Werling Co $\begin{array}{rr}\text { Common Stock, \$8 par } & 80,000 \\\text { Common Stock, \$3 par } && 80,000\end{array}$

Multiple Choice

Werling Co.had 10, 000 shares of $8 par common stock outstanding just prior to a stock split.The stock was split two-for-one and the par value was reduced to $3.Which entry correctly records this stock split?

A)
$\begin{array}{rr}\text { Common Stock, \$8 par } & 80,000 \\\text { Common Stock, \$3 par } && 80,000\end{array}$

B)
$\begin{array}{lc}\text { Common Stock, \$8 par } & 80,000 \\\text { Common Stock, \$3 par } & \quad\quad60,000 \\\text { Additional Paid-in Capital from Stock Split } & 20,000\end{array}$

C)
$\begin{array}{lc}\text { Common Stock, \$8 par } & 80,000 \\\text { Common Stock, \$3 par } & 60,000 \\\text { Gain on Stock Split } & 20,000\end{array}$

D)
$\begin{array}{lc}\text { Common Stock, \$8 par } & 80,000 \\\text { Common Stock, \$3 par } & 60,000 \\\text { Gain on Surplus} & 20,000\end{array}$