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To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 800,

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Answer #1

In case of large stock dividend entry is made at par value (in case of small stock dividend market price is used)

So entry will be as follows

Particulars Debit Credit
Retained earnings (200000*100%*$1) $200000
Common stock dividend distributable $200000


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