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

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When a company issues a 100% common stock dividend or large stock dividend, it means that the company is giving additional shares of common stock to its existing shareholders. The par value of the shares issued represents the minimum legal value assigned to each share of stock and is credited to the common stock account. Therefore, the issuer of a 100% common stock dividend should credit common stock for an amount equal to the par value of the shares issued.

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