Arcus Development Inc.’s equity section on the December 31, 2016, balance sheet showed the following information:

Common shares, unlimited shares authorized, 290,000 shares issued and outstanding	$3,712,000
Retained earnings	542,500

On January 15, 2017, the company’s board of directors declared a 10% share dividend to the shareholders of record on January 20 to be distributed on January 30. The market prices of the shares on January 15, 20, and 30 were $16.50, $13.80, and $15.15, respectively.

Required:
1. Prepare the required entries for January 15, 20, and 30. Assume share dividends account is used when dividends are declared. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. Record the declaration of share dividends to common shareholder

b. Record the date of entry into the books of accounts

c. Record the distribution of share dividends to common shareholders

2. Prepare the equity section on January 31, 2017, balance sheet, assuming profit earned during January 2017 was $707,500.

Answer rating: 100% (QA)

Part 1 Jan 15 2015 Share Dividends 478500 Common Share Dividends Dis... View the full answer