|Question taken from IICS past year examination, also special thanks to Mr.Lim for his kind teachings.|
Common stock (£1 par value) will increase by £1,000 (£1 par value per share x 1,000 newly issued shares due to 10% stock dividend).
|Alteration in owner's equity accounts after a 'one-for-five reverse stock split' is declared|
Additional question and answer of which I took from my college past year question, it is solely focus on essay part (the differences). Thus, very theoretical and need deep analytical skills.
|This Q&A explains the differences between stock dividend and stock split, their effects on equity accounts|
and their respective accounting treatment with examples to aid explanation.