CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited shares authorized; 4,000,000

Question:

CarFind Inc. showed the following equity information at December 31, 2019.

Common shares, unlimited shares authorized;
4,000,000 shares issued and outstanding ............................................ $1,004,480
Retained earnings ...................................................................................... 1,312,000

On April 1, 2020, 200,000 common shares were issued at $0.60 per share. On June 1, the board of directors declared a 15% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.08, $1.76, and $1.96, 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, 2020, balance sheet. Analysis Component: What are the benefits to CarFind Inc. of declaring a share dividend as opposed to a cash 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... 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...

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