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

Question

Quizplus · Accepted Answer

When a company issues a 100% common stock dividend, it means that they are issuing additional shares of stock to their existing shareholders without changing the total amount of equity in the company. The par value of the shares issued represents the legal capital of the corporation, and therefore, the stock dividends account should be debited for an amount equal to the par value of the shares issued.

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