1. Stocks in lieu of cash dividend-treated as dividend income and recorded at FMV w/a DR.
2. Cash received in lieu of stock dividend, treated as return of investment
- Cash xx
- Investment xx
- Gain xx
- 3. Stock dividend is not journalized only memo entry.
- 4.Preference shares is a non-rating shares. Any dividend received should be treated as a dividend income.
- 5. Stock dividends of diff. class are not income, the total amount of consideration be divided to diff classes of stocks.