Prepare the entries on the appropriate dates to record the stock dividend.

Analyze impact of stock dividend.

BE$14\mathrm{.}2($LO $1)$ AP The shareholders' equity section of Ferndale Corporation's balance sheet consists of $225,000$ common shares for $$2$ million, and retained earnings of $$600,000.$ A $10\%$ stock dividend is declared when the fair value per share is $$12.$ Show the before$-$and$-$after effects of the dividend on $($a$)$ share capital, $($b$)$ retained earnings, $($c$)$ total shareholders' equity, and $($d$)$ the number of shares.

Compare cash dividend, stock dividend, and stock split.

BE$14\mathrm{.}3($LO $1)$ AP Indicate whether each of the following transactions would increase $(+),$ decrease $(-),$ or have no effect $($NE$)$ on total assets, total liabilities, total shareholders" equity, and the number of shares:

Transaction

Assets Liabilities

Shareholders' Number

Equity of Shares