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VLD [36.1K]
3 years ago
8

Aaron Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed c

apital section of stockholders' equity?
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
Business
1 answer:
belka [17]3 years ago
7 0

Answer:

Answer: A  Common stock increased by: Dividend shares × Par value per share. Retained earnings is decreased by the same amount.

Explanation

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