A Stock Dividend Has What Effect on the Following Accounts

question 92

Multiple Choice

A stock dividend has what effect on the following accounts?

• A)Debit Retained Earnings,debit Common Stock;credit Paid-in Capital in Excess of Par.
• B)Debit Common Stock;credit Retained Earnings;credit Paid-in Capital in Excess of Par.
• C)Debit Retained Earnings;credit Common Stock,credit Paid-in Capital in Excess of Par.
• D)Credit Retained Earnings,credit Common Stock and credit Paid-in Capital in Excess of Par.