Chapter 15, Problem 6CA

To determine

Stock dividend: A stock dividend refers to issuing the own stocks to the stockholders on a pro rata basis by a corporation and it is performed without receiving any payment. The stock dividend results in an increase in the amounts of legal or stated capital of the organization. The dividend is charged to the retained earnings or other capital accounts, which is not a part of legal capital.

(a)

To determine the accounting of treasury stock in the balance sheet of M.

To determine

(b)

To determine the accounting of stock dividend in the balance sheet of M.

To determine

(c)

To determine the accounting of cash dividend in the balance sheet of M.