Carin, Inc. declared a 50% stock dividend on January 15, when there were 10,000 shares of $1 par value stock issued and outstanding, and the market value was $20. The entry to record the distribution of stock will include a debit to the Common Stock Dividend Distributable account, in the amount of $5,000
Since Carin declared 50% of 10,000 shares of $1 par value, then the entry will include a debit to the common stock dividend distributable account for $5,000 (50% of 10,000 shares at 1$ each)
The common stock dividend Distributable account is an equity account that is owned by stockholders. Such an account is credited for the declared value of the shares that are distributable when the declaration of a stock dividend is being recorded and also until when the stock is issued to the company's stockholders.
However, a stock dividend distributable is not a liability because it is not paid with assets.
A stock dividend is types of dividend that is issued by a company to its shareholders while a dividend is seen to be cash payment issued by companies to their stockholders.
The several types of divided includes
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The matching words in completing the above sentence are "company" and "$ 200,000"
Because Carin, Inc. is a company, and its activities are buying and selling shares. Therefore all income will go to the company's debit account.
$ 200,000 is the number of shares obtained from market value. Ie 10,000 shares multiplied by $ 20, then the result is $ 200,000.
One of the main benefits of the stock is that it can be used as an investment instrument, both short and long term.
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Class: High School
Subject: business
keywords: stocks, securities, companies
