Foster Corporation Has 800,000 Shares of $3 Par Value Common

Multiple Choice

Foster Corporation has 800,000 shares of $3 par value common stock authorized,and 350,000 shares issued and outstanding.The market value of the stock is $22 per share.The journal entry to record the declaration of a 75% stock dividend would include a:

A) credit to dividend payable for $1,800,000
B) credit to Common Stock Dividends Distributable for $787,500
C) debit to Retained Earnings for $5,775,000
D) credit to Common Stock Dividends Distributable for $4,987,500