Question 4 1. Aaron Company plans to issue a large stock dividend. In accounting

Question

Question 4
1.
Aaron Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed capital section of stockholders' equity?
Answer

A. Common stock increases by the number of dividend shares x par value per share, and retained earnings decreases for the same amount

B. Retained earnings increases by the number of dividend shares x par value per share, and additional paid-in capital increases for the balance

C. Common stock increases by the number of dividend shares x par value per share, and retained earnings increases for the balance

D. Common stock increases by the total market value of the dividend
1 points

Explanation / Answer

d

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.