Jennings Corp

Multiple Choice

Jennings Corp.has 1,000,000 shares of $1 par value stock authorized,200,000 shares issued,and 150,000 shares outstanding.On June 1,2014,Jennings' Board of Directors declared a 10% stock dividend.At that time,the stock had market value of $30.How would the company record this transaction?

A) Debit Retained Earnings for $15,000 and credit Common Stock Dividend Distributable for $15,000.
B) Debit Retained Earnings for $450,000,credit Common Stock Dividend Distributable for $15,000,and credit Paid-In Capital in Excess of Par Value,Common Stock for $435,000.
C) Debit Common Stock Dividend Distributable for $450,000 and credit Common Stock,$1 Par Value for $450,000.
D) Debit Common Stock Dividend Distributable for $435,000 and credit Common Stock,$1 Par Value for $435,000.
E) Debit Common Stock Dividend Distributable for $15,000 and credit Common Stock,$1 Par Value for $15,000.