Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is an inadequate cash available in the company. Cash dividends : The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends. To journalize: the declaration of stock dividend of Incorporation P.

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Chapter 13, Problem 13.28E

1.

To determine

Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is an inadequate cash available in the company.

Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.

To journalize: the declaration of stock dividend of Incorporation P.

2.

To determine

To journalize: the declaration of the cash dividends of Incorporation P.

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