The journal entry to record the issuance of a stock dividend is to:
A) debit Common Stock Dividend Distributable (number of shares × par value common stock) ; credit Common Stock (same) .
B) debit Common Stock Dividends Distributable (number of shares × market value common stock) ; credit Common Stock (same) .
C) debit Retained Earnings (market value × number of shares) ; credit Common Stock Dividends Distributable (number of shares × par value) ; credit Paid-in Capital in Excess of Par-Stock Dividend.
D) debit Common Stock Dividend Distributable (number of shares × par value) ; credit Cash.
Correct Answer:
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