Stock Dividends Received under Cost and Equity Method??

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  • February 6, 2012 at 8:32 pm #166014
    Anonymous
    Inactive

    studying FAR made me confused!!

    Can someone help me out to know if there is any Journal Entry for Receiving Stock Dividends using the cost method and Equity method?? Is it recorded as dividend income on the Income Statement like Cash dividend under cost method ? And is there any increase or decrease in Investment account using Equity method??

    Can some one help please??

    Thanks,

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  • February 6, 2012 at 8:52 pm #322882
    katiekanton
    Member

    My review materials say “recipient of the stock dividend” just makes a memorandum entry changing the number of shares and par if applicable.

    AUD - 88
    FAR - 90
    REG - 85
    BEC - 88

    February 6, 2012 at 9:04 pm #322883
    Anonymous
    Inactive

    Thanks. Does it hold good for both Equity as well as Cost method?

    February 7, 2012 at 8:58 am #322884
    Anonymous
    Inactive

    Ping!! Can somebody help please?

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