Question: The shareholders equity for Pondwood Inc on December 31 2013

The shareholders’ equity for Pondwood, Inc. on December 31, 2013, follows:
Shareholders’ Equity
Share Capital:
Common Shares, 350,000 shares authorized,
40,000 issued and outstanding ...... $200,000
Total Share Capital ............. 200,000
Retained Earnings ............. 360,000
Total Shareholders’ Equity ......... $560,000
On September 30, 2014, the market price of Pondwood’s common shares was $11 per share and the company distributed a 30% 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.



Sale on SolutionInn
Sales0
Views43
Comments
  • CreatedJuly 08, 2015
  • Files Included
Post your question
5000