The shareholders' equity for Blade, Inc. on December 31, 2014, follows: Shareholders' Equity Share Capital: Common Shares, 100,000 shares authorized,

Question:

The shareholders' equity for Blade, Inc. on December 31, 2014, follows:

Shareholders' Equity

Share Capital:

Common Shares, 100,000 shares authorized,

50,000 shares issued and outstanding ...........................$450,000

Total Share Capital .................................................$450,000

Retained Earnings ................................................. 120,000

Total Shareholders' Equity .......................................$570,000

On April 30, 2015, the market price of Blade's common shares was $16 per share and the company distributed a 10% stock dividend.

Requirements

1. Journalize the declaration and distribution of the stock dividend.

2. Prepare the shareholders' equity section of the statement of financial position after the stock dividend.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...