Effects on Retained Earnings and the Income Statem

Discuss cash dividends and stock dividends.

How is each recorded?

When each is issued, what is the affect on assets, liabilities and owner- 

equity?
      
Cash dividends are recorded as retained earnings to dividend payable to cash.

In declaration, the stock dividends are recorded as retained earnings to notes 

payable to stockholders dividends payable. 

During the payment process, the stock dividends are recorded as notes 

payable to stockholders to accounts payable. 

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