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Understanding Financial Accounting
On December 31, 2024, Talbot Corporations common shares had a

On December 31, 2024, Talbot Corporations common shares had a market price of $25 per share before

Question:

On December 31, 2024, Talbot Corporation’s common shares had a market price of $25 per share before any stock dividend or split, and the shareholders’ equity section of the balance sheet appeared as follows:On December 31, 2024, the board of directors of Talbot Corporation declared a 20% stock dividend. On January 15, 2025, the new shares were issued.

Required

a. Prepare the journal entries to record the stock dividend.

b. Determine the balance in Retained Earnings after the stock dividend.

Transcribed Image Text:

Common shares: unlimited shares authorized, 40,000 shares issued, and outstanding Retained earnings Total shareholders' equity $ 742,000 1,500,000 $2,242,000

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Understanding Financial Accounting

ISBN: 9781119715474

3rd Canadian Edition

Authors: Christopher D. Burnley

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Question Posted: Jan 31, 2023 04:34 AM

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