Fidelity Software Ltd. has 80,000 common shares issued. Suppose Fidelity distributes a 10% stock dividend on May
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Fidelity Software Ltd. has 80,000 common shares issued. Suppose Fidelity distributes a 10% stock dividend on May 11 when the market price (fair value) of its shares is $10.50 per share.
1. Journalize Fidelity's distribution of the shares dividend. An explanation is not required.
2. What was the overall effect of the stock dividend on Fidelity's total assets? What about on its total liabilities and its total shareholders' equity?
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For 
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
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