Journal entry of the Stocks given as the Stock-Dividend

[ank]

If stocks are given as the dividend, then how are the cash entries generated?

Do we not generate any Cash Entry for the dividend part or do we generate the Cash Entry for the dividend part and adjust the original Cash entry accordingly to keep no cash impact?
Clarify.

 

[Counterofbeans]

If stock is being issued as a dividend, why would you desire to record a cash entry? It is a combination of the two or something?

For stock dividends, you need to ask yourself, "Is this a large stock dividend" or not? If it is, then it's treated as a stock split. Otherwise, issue at FMV of the stock issued.