Information taken from Jamestown Corp.s balance sheet as of April 1, 2020, follows: Common shares, 375,000 shares

Question:

Information taken from Jamestown Corp.’s balance sheet as of April 1, 2020, follows:

Common shares, 375,000 shares authorized,
150,000 shares issued and outstanding ......................................... $1,102,500
Retained earnings ................................................................................... 633,000

On April 1, Jamestown declares and distributes a 10% share dividend. The market value of the shares on this date is $25. Prepare the equity section for Jamestown immediately following the share dividend (assume all dividends are debited directly to Retained Earnings).

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...

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