John Jones Company Has 20,000 Shares of $100 Par Value

Multiple Choice

John Jones Company has 20,000 shares of $100 par value common stock.Assuming that the proper journal entry was made to record a 5% common stock dividend on the declaration date when the market value of the stock was $135, which of the following accounts would be debited when the stock dividend is distributed?

A) Retained Earnings.
B) Dividends Payable.
C) Common Stock Dividends Distributable.
D) Paid-in Capital in Excess of Par Value.