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Declaration of Stock Dividends (Bonus Shares)
Issuing new shares to existing shareholders instead of cash.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Retained Earnings | Equity (-) | 10,000.00 | - |
| Common Stock (at Par) | Equity (+) | - | 1,000.00 |
| Paid-in Capital (APIC) | Equity (+) | - | 9,000.00 |
💡 Accountant's Note
A stock dividend doesn't change the company's total equity, but it moves money from Retained Earnings into the Share Capital account.
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