Question

The shareholders’ equity for Blade, Inc. on December 31, 2013, follows:
Shareholders’ Equity
Share Capital:
Common Shares, 100,000 shares authorized,
50,000 shares issued and outstanding ......... $450,000
Total Share Capital ................ $450,000
Retained Earnings ............... 120,000
Total Shareholders’ Equity .............. $570,000
On April 30, 2014, the market price of Blade’s common shares was $16 per share and the company distributed a 10% stock dividend.
Requirements
1. Journalize the declaration and distribution of the stock dividend.
2. Prepare the shareholders’ equity section of the balance sheet after the stock dividend.


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  • CreatedJuly 08, 2015
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