medium · Financial Accounting stockholders-equity
A company issues a 100% stock dividend on 100,000 shares of $1 par value stock.
What is the required journal entry?
- Debit Retained Earnings at the market price of the shares issued
- Debit Paid-in Capital; Credit Retained Earnings $100,000 for the transfer
- Debit Retained Earnings $100,000; Credit Common Stock $100,000
- No journal entry is required; only a memo notation is made
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