The issuer of a 100% common stock dividend (large stock dividend) to common stockholders should debit stock dividends for an amount equal to the

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When issuing a 100% common stock dividend, the company is essentially doubling the number of outstanding shares, but without changing the total equity of the company. Therefore, the stock dividends account should be debited for the total par value of the shares issued. This is because par value represents the legal capital of an entity and is the minimum amount that must be retained in the company's equity section. The book value and market value of the shares have no bearing on the accounting treatment of a stock dividend issuance. The minimum legal requirements are not relevant to this specific question.

The Issuer of a 100% Common Stock Dividend (Large Stock