Purchase Solution

Explanation of Stock Dividends

Not what you're looking for?

Ask Custom Question

What about a stock dividend? How are stock dividends accounted for and why is there more than one accounting method for them?

Purchase this Solution
Solution Summary

What about a stock dividend? How are stock dividends accounted for and why is there more than one accounting method for them?

Solution Preview

There are several methods to account for stock dividends based on the actual type of dividend and terms of the dividend that are being declared. The reason why there are different ways to account for the dividends is because there are different actions surrounding dividends. When the dividend is declared, an entry is made for the declaration of the dividend, even though it is not yet paid. Most companies would record the declared dividend as a debit to retained earnings, and the credits would go to dividends ...

Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Stock Transactions

    Preferred Stock Date Explanation Ref Debit Credit Balance Jan. 1 Balance 500,000 Common Stock Date Explanation Ref Debit Credit Balance Jan. 1 Balance 900,000 Paid in Capital in Excess of Par Value

  • Description of Stock Transactions

    Preferred Stock Date Explanation Ref Debit Credit Balance Jan. 1 Balance 500,000 Common Stock Date Explanation Ref Debit Credit Balance Jan. 1 Balance 900,000 Paid in Capital in Excess of Par Value

  • Stock Valuation

    discount model (constant growth) to find the price of the stock at end of year 5.

  • company's cash dividends and annual report

    This solution is comprised of a detailed explanation to answer dividends per share for 2008, to be reported in the firm's annual report for 2010 are what.

  • Dividends that corporations issue

    This solution is comprised of a detailed explanation to answer what are the different types of dividends that corporations may issue, when should a corporation pay dividends, and would you prefer a stock dividend or a cash dividend.

  • Anne Cleves Company

    Less: Treasury stock at cost 40,000 Total $1,277,700 This solution is comprised of a detailed explanation to answer the request of the assignment in excel file.

  • The stock listing for a company shows a P/E of 18

    Dividend yield = Dividends per share/Market share price 2.4% = Dividends per share/$23.76 Dividends per share = $0.57 This solution is comprised of a detailed explanation to answer what is the amount of dividends per share.

  • Dividends

    This solution is comprised of a detailed explanation to answer why does the value of a share of stock depend on dividends.

  • cash dividends

    a detailed explanation to calculate the annual cash dividends to be paid for each of these preferred stock issuances.

  • Armada Corporation

    This solution is comprised of a detailed explanation to prepare the entries, if any, on each of the three dividend dates.

View More Related Solutions