When a 5% stock dividend is declared,which account is debited?
A) Common Stock-Par Value
B) Common Stock Dividend Distributable
C) Stock Dividends
D) Paid-In Capital in Excess of Par-Common

Question

Quizplus · Accepted Answer

When a company declares a stock dividend, it debits the Stock Dividends account, which represents the value of the dividend distribution. This account is used to record the cost of the dividends declared in the form of additional shares rather than cash.

When a 5% Stock Dividend Is Declared,which Account Is Debited