Multiple Choice
A company issues a 4 % stock dividend when the price of the stock was $6 per share.The company has 20 million common shares outstanding prior to the stock dividend.How would the company account for this stock dividend?
A) Debit retained earnings; Credit common shares
B) Debit cash; Credit common shares
C) Debit retained earnings; Credit contributed surplus
D) Debit common shares; Credit contributed surplus
Correct Answer:
Verified
Correct Answer:
Verified
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