On September 1,Ziegler Corporation Had 50,000 Shares of $5 Par

Multiple Choice

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 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 $750,000;credit Common Stock Split Distributable $750,000.
B) Debit Retained Earnings $750,000;credit Common Stock $750,000.
C) Debit Retained Earnings $250,000;credit Common Stock $250,000.
D) Debit Retained Earnings $250,000;credit Stock Split Payable $250,000.
E) No entry is made for this transaction.