Asked by
kundan kumar
on Dec 17, 2024
Verified
The entry to record the distribution of the stock dividend would include:
A) a debit to Common Stock.
B) a debit to Common Stock Dividend Distributable.
C) a debit to Retained Earnings.
D) None of these answers is correct.
Stock Dividend
Stock that is distributed to stockholders instead of cash or other assets.
Common Stock
Equity shares issued by a corporation as ownership evidence, granting voting rights and a share in the company's profits.
- Comprehend the procedure and consequences associated with the declaration and distribution of dividends.
- Comprehend the impact of dividends on financial statements and their documentation in journals.
Verified Answer
MM
Learning Objectives
- Comprehend the procedure and consequences associated with the declaration and distribution of dividends.
- Comprehend the impact of dividends on financial statements and their documentation in journals.