Asked by
FootballMan1 Miller
on Dec 17, 2024
Verified
The journal entry to record the issuance of a stock dividend is to:
A) debit Common Stock Dividend Distributable; credit Common Stock.
B) debit Common Stock Dividends Distributable; credit Dividends Payable.
C) debit Retained Earnings; credit Common Stock Dividends Distributable; credit Paid-in Capital in Excess of Par Value-Cash Dividend.
D) debit Common Stock Dividend Distributable; credit Cash.
Common Stock Dividend Distributable
Stockholders’ equity account that accumulates a stock dividend that has been declared but not yet issued and distributed.
Paid-in Capital
The amount of money that a company has received from shareholders in exchange for shares of stock.
Par Value
The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.
- Understand the accounting treatment for stock dividends.
Verified Answer
IO
Learning Objectives
- Understand the accounting treatment for stock dividends.