On September 1,a Corporation Had 50,000 Shares of $5 Par

Multiple Choice

On September 1,a corporation had 50,000 shares of $5 par value common stock and $1,000,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

A)
$\begin{array}{|l|c|c|}\hline \text { Retained Earnings } & 750,000 & \\\hline \text { Common Stock Split Distributable } & & 750,000 \\\hline\end{array}$

B)
$\begin{array}{|c|c|c|}\hline \text { Retained Earnings } & 750,000 & \\\hline \text { Common Stock } & & 750,000 \\\hline\end{array}$

C)
$\begin{array}{|c|c|c|}\hline \text { Retained Earnings } & 250,000 & \\\hline \text { Common Stock } & & 250,000 \\\hline\end{array}$

D)
$\begin{array}{|c|c|c|}\hline \text { Retained Earnings } & 250,000 & \\\hline \text { Stock split payable } & & 250,000 \\\hline\end{array}$

E) No entry is made for this transaction