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,...

Before After a Share capital 2000000 2270000 b Retained earnings ...

The shareholders' equity section of Ferndale Corporation's balance sheet consists of 225,000 common shares for $2 million,

Question:

The shareholders' equity section of Ferndale Corporation's consists of 225,000 common shares for $2 million, and retained earnings of $600,000. A 10% stock is declared when the fair value per share is $12. Show the before-and-after effects of the on
(a) Share capital,
(b) Retained earnings,
(c) Total shareholders' equity, and
(d) The number of shares.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...