what are the journal entries when a shareholder decides to receives shares instead of a dividend
what are the journal entries when a shareholder decides to receives shares instead of a dividend
Homework Answers
When shareholder receives shares instead of dividend, such practice is termed as Stock Dividend. It is a method, a company distribute its wealth to the shareholders in the form of shares rather than in cash.
The journal entry for stock dividend as a large stock dividend is as follows;
1. At the time of declaration;
Debit : Retained Earnings ( Number of Shares x Par Value per share)
Credit : Common Stock Dividend Distributable
2. At the time of distribution
Debit : Common Stock Dividend Distributable
Credit : Common Stock.
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what are the journal entries when a shareholder
decides to receives shares instead of a dividend
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what are the journal entries for the above (received
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