John Jones Company has 20,000 shares of $100 par value common stock.Assuming that the proper journal entry was made to record a 5% common stock dividend on the declaration date when the market value of the stock was $135, which of the following accounts would be debited when the stock dividend is distributed?
A)Retained Earnings.
B)Dividends Payable.
C)Common Stock Dividends Distributable.
D)Paid-in Capital in Excess of Par Value.

Question

Quizplus · Accepted Answer

When the stock dividend is distributed, the "Common Stock Dividends Distributable" account is debited to transfer the amount to the "Common Stock" account.

John Jones Company Has 20,000 Shares of $100 Par Value