Answered: When stock dividends are distributed…

When stock dividends are distributed stock dividends distributable is decreased. retained earnings is decreased. common shares is debited. no entry is necessary.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 8CYBK

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Question

When stock dividends are distributed
stock dividends distributable is decreased.
retained earnings is decreased.
common shares is debited.
no entry is necessary.

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