Stock Dividend

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In a stock dividend, how do you determine the Stock Dividend value?

Shares X Dividend Rate X Market Price

What is a stock dividend?

Dividend that is issued in a form of more stock to shareholders

What do you debit and what do you credit when a company DISTRIBUTES the cash dividend?

Dr. Common Stock Dividends Payable Cr. Common Stock

What do you debit and what do you credit when a company DECLARES they will be paying a cash dividend?

Dr. Stock Dividends Cr. Common Stock Dividends Payable Cr. Paid in Capitol

How do stock dividends effect the accounting equation?

IT DOESNT!!! A = L + E

What do you debit and what do you credit when a company RECORDS the cash dividend?

NO ENTRY.. TRICK QUESTION

In a stock dividend, how do you determine the Common Stock Dividends Distributable value?

Shares X Dividend Rate X Par Value

Stock dividends do not effect the financial position of the company!

TRUE


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