If a corporation declares and distributes a 10% stock dividend on its common shares,the account debited is:
A)Dividends Payable.
B)Common Stock.
C)Additional Paid-in Capital.
D)Retained Earnings.

Question

Quizplus · Accepted Answer

When a corporation declares a stock dividend, Retained Earnings is debited to reflect the distribution of earnings to shareholders in the form of additional shares.

If a Corporation Declares and Distributes a 10% Stock Dividend