PAC Corporation Has 500,000 Shares of $5 Par Value Common

Multiple Choice

PAC Corporation has 500,000 shares of $5 par value common stock authorized,and 300,000 shares issued and outstanding.The market value of the stock is $14 per share.The journal entry to record the declaration of a 15% stock dividend would include a:

A) credit to dividend payable for $1,050,000
B) credit to Common Stock for $375,000
C) debit to Retained Earnings for $630,000
D) Credit to Stock Dividends Distributable for $375,000