Asked by Taylor Wenzel on Jun 15, 2024
Verified
Which one of the following events would not require a journal entry on a corporation's books?
A) 2-for-1 stock split
B) 100% stock dividend
C) 2% stock dividend
D) $1 per share cash dividend
2-For-1 Stock Split
A corporate action where a company doubles its number of outstanding shares, halving the stock price, effectively giving shareholders two shares for every one they owned.
- Comprehend the impacts of stock splits and stock dividends on the accumulation of retained earnings and the configuration of equity.
Verified Answer
PB
PHUONG BUI THUJun 18, 2024
Final Answer :
A
Explanation :
A 2-for-1 stock split does not require a journal entry because it does not change the total value of the shares; it only increases the number of shares while decreasing the par value per share proportionally.
Learning Objectives
- Comprehend the impacts of stock splits and stock dividends on the accumulation of retained earnings and the configuration of equity.