Use this information to answer the following question. Hernandez Corporation has 60,000 shares of $10 par value common stock outstanding. The following transactions occurred during the year: Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20 . Market value of the stock was $13 on March 17. 30 Distributed the stock dividend. The entry to record the transaction of
March 17 would be:
a. Stock Dividends 78,000
Common Stock Distributable 60,000
Additional Paid-in Capital 18,000
b. Common Stock Distributable 60,000
Common Stock 60,000
c. Common Stock Distributable 78,000
Common Stock 60,000
Retained Earnings 18,000
d. Stock Dividends 78,000
Cash 78,000
A
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