On July 17th when the shares of stock are distributed to the stockholders

On July 17th when the shares of stock are distributed to the stockholders

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On July 17th when the shares of stock are distributed to the stockholders, an entry is made to  decrease (debit) common stock dividend distributable and increase (credit) common stock for  $150,000, the par (or stated value). General Journal Date Account Title and Description Ref. Debit Credit 20X0 July 17
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Unformatted text preview: Common Stock Dividend Distributable 150,000 Common Stock 150,000 Issue shares for stock dividend The net effect of the entries recorded when a stock dividend is declared and distributed is a change in the components of stockholders' equity but not in total stockholders' equity or assets....
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