Issuing a stock dividend would show a debit to Common Stock and a credit to Common Stock Dividends Distributable.

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Faith Gomez · Accepted Answer

Final Answer : False, Explanation :  Issuing a stock dividend would show a debit to Retained Earnings (or a similar account) and a credit to Common Stock Dividends Distributable, reflecting the reduction in retained earnings to account for the distribution and the obligation to distribute the stock dividend.

Issuing a stock dividend would show a debit to Common Stock and a credit to Common Stock Dividends Distributable.

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