On March 1, 2023, VisionTech Inc.’s board of directors declared a 5% share dividend when the market price per share was $10.00. On November 15, 2023, the board of directors declared a 4:1 share split. The equity section of the company’s December 31, 2022, balance sheet showed:
Common shares; 20,000,000 shares authorized;

Required
1. Prepare a statement of changes in equity for the year ended December 31, 2023, assuming profit earned during the year was $4,784,000.
2. Prepare the equity section of the December 31, 2023, balance sheet.

Transcribed Image Text:

2,500,000 shares issued and outstanding....... Retained earnings........... $15,600,000 5,142,400