The Journal Entry to Record the Issuance of a Stock

question 62

Multiple Choice

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.

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