Odessa Corporation Had 20,000 Shares of $2 Par Value Common

Multiple Choice

Odessa Corporation had 20,000 shares of $2 par value common stock outstanding on July 1.On that day,the board of directors declared a 10% stock dividend when the market value of each share was $9.The stock dividend is to be distributed on July 20 to stockholders of record on July 10.The entry to record the dividend declaration is:

A) Debit Retained Earnings $18,000; credit Common Stock Dividend Distributable $18,000.
B) Debit Retained Earnings $18,000; credit Common Stock Dividends Distributable $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000.
C) Debit Retained Earnings $18,000; credit Common Stock $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000.
D) Debit Retained Earnings $18,000; credit Common Stock $18,000.
E) No entry is made until the stock is issued.