Exercise $13-6$ Share dividend, share split, equity section of balance sheet LO$1$

CHECK FIGURE: Equity Dec. $31,2023=$$$3,836,480$

CarFind Inc. showed the following equity information at December $31,2022.$

Common shares, unlimited shares authorized;

$4,000,000$ shares issued and outstanding.

Retained earnings.

$$1,004,480$

On April $1,2023,200,000$ common shares were issued at $$0\mathrm{.}60$ per share. On June $1,$ the board of directors declared a $15\%$ share

$1,312,000$

dividend to shareholders of record on June $15$; the distribution date was July $1.$ The market prices of the shares on June $1,$ June

Page $979$

$15,$ and July $1$ were $$2\mathrm{.}08,$$$1\mathrm{.}76,$ and $$1\mathrm{.}96,$ respectively. On December $11,$ the board of directors declared a $2$:$1$ share split to shareholders of record on December $15$; the distribution date was December $20.$ Profit earned during the year was $$1,400,000.$

Required

Prepare the company's equity section on the December $31,2023,$ balance sheet.

Analysis Component:

What are the benefits to CarFind Inc. of declaring a share dividend as opposed to a cash dividend?

SHOW JOURNAL ENTRIES to go along with it all $!!$