Which one of the following events would not require a formal journal entry on a corporation's books?
A) 2 for 1 stock split
B) 100% stock dividend
C) 2% stock dividend
D) $1 per share cash dividend

Question

Quizplus · Accepted Answer

A 2 for 1 stock split does not require a formal journal entry on a corporation's books because it does not change the total amount of shareholder equity or the proportional ownership of each shareholder. The other options all involve a change in the amount of shareholder equity, which would require a formal journal entry.

Which One of the Following Events Would Not Require a Formal