[Topsya]

According to the book, Stock Dividends do not affect the total Stockholders’ Equity.

And I do not understand why….

When the Dividends are declared you

Dr RE (for either FV of stock or par value).

And then you

Cr Stock Divid. Distributable

Cr Paid in Capital

as far as I understand RE and PIC would def. affect Stockholders’ equity…. Am I wrong? Help?

Thanks!!!!!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[barelystayingsane]

There is no net change in equity. Funds are just moved between equity accounts.

[icanhazcpa]

Since they're both equity accounts there's no net change, it reminds me of when you recover a previously written off AR because there's no net effect once all the entries are made.

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

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