A small stock dividend: Only affects the par value not the equity account balances. Reduces cash by the total market value of the issued shares.
A small stock dividend:
Only affects the par value not the equity account balances.
Reduces cash by the total market value of the issued shares.
Reduces retained earnings by the market price of each share issued.
Increases the common stock account by the market price of each share issued. Reduces retained earnings by the par value of each share issued.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
