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21 July, 12:22

The entry to record the distribution of the stock dividend would include

A. a credit to Common Stock.

B. a debit to Common Stock Distributable.

C. Both a and b

D. None of the above

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Answers (1)
  1. 21 July, 15:40
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    The correct answer is B. A debit to common stock distributed.

    The entry will be stock dividends debit, paid-in capital which is in excess per common credit stock, stock dividends which are being distributed.

    In credit entry it records distribution and declaration of stock dividend which includes the debit to the retained earnings and also a credit to the common stock.
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