Stock Dividend
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
