A company declares a 5% stock dividend. The debit to Retained Earnings is anamount equal toa. the market value of the shares to be issued.b. the par value of the shares to be issued.c. the book value of the shares to be issued.d. the excess of the market price over the original issue price of the shares to be issued.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 10BE: A company reports the following: Determine (a) the return on stockholders equity and (b) the return...
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A company declares a 5% stock dividend. The debit to Retained Earnings is an
amount equal to
a. the market value of the shares to be issued.
b. the par value of the shares to be issued.
c. the book value of the shares to be issued.
d. the excess of the market price over the original issue price of the shares to be issued.

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