Lamar Industries uses the legal capital approach and issues a stock dividend worth $40,000. What would be the journal entry to record this transaction?
A) $40,000 debit to Cash and credit Common Stock
B) $40,000 debit to Common Stock Dividend Distributable and credit to Cash
C) $40,000 debit to Common Stock Dividend Distributable and credit to Common Stock
D) $40,000 credit to Cash and debit to Retained Earnings
Correct Answer:
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