Large Stock Dividend
Illustrative Entry

XX-XX-X9

Retained Earnings

 

500,000

 
            Common Stock    

500,000

  To record issuance of a 50% stock dividend (1,000,000 assumed shares outstanding X 50% X $1 per share par)      

Note:  This entry would not be appropriate for small stock dividends (under 20 to 25%).

 

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