On January 1, Sway Corporation Had 60,000 Shares of $10

Multiple Choice

On January 1, Sway Corporation had 60,000 shares of $10 par value common stock outstanding. On March 17, the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The entry to record the transaction of March 17 would include a

A) credit to Stock Dividends for $18,000.
B) credit to Cash for $78,000.
C) credit to Common Stock Dividends Distributable for $60,000.
D) debit to Common Stock Dividends Distributable for $60,000.