Question

To record a large stock dividend, accountants use ________. To record a small stock dividend, accountants...

To record a large stock dividend, accountants use ________. To record a small stock dividend, accountants use ________.

par value per share; market price per share

market price per share; par value per share

market price per share; market price per share

par value per share; par value per share
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Answer #1

stock dividends are issuance of stock to existing shareholders on propotional basis as dividend instead of cash.

small stock dividend are generally less than 20-25% of existing shares oustanding.

large dividends are more than 25% of existing shares.

stock dividends are recorded by transferring amount from retained earnings to paid in capital.

The price that is used to record large stock dividend is par value of share.

where as ,small stock dividend is accounted for market price on the date of declaration.

so answer is par value per share; market price per share

answer A

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