Question

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.


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  • CreatedJuly 08, 2015
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