Dolanski Company declares and distributes a 40% common stock dividend when it has 50,000 shares of $10 par common stock outstanding. The market price per share is $ 40 at the date of declaration. Which journal entry is prepared?

A. debit Retained Earnings $ 800,000, credit Paidminusin Capital in Excess of Parlong dashCommon $500,000
B. debit Retained Earnings $ 200,000 and credit Common Stock $ 200,000
C. debit Retained Earnings $ 800,000, credit Common Stock $ 200,000 and credit Paidminusin Capital in Excess of Parlong dashCommon $ 600,000
D. debit Retained Earnings $ 800,000 and credit Common Stock $ 800,000

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.