On March 1, 2020, VisionTech Inc.s board of directors declared a 5% share dividend when the market

Question:

On March 1, 2020, VisionTech Inc.’s board of directors declared a 5% share dividend when the market price per share was $10.00. On November 15, 2020, the board of directors declared a 4:1 share split. The equity section of the company’s December 31, 2019, balance sheet showed:

Common shares; 20,000,000 shares authorized;
2,500,000 shares issued and outstanding ........................................... $15,600,000
Retained earnings ....................................................................................... 5,142,400

Required

1. Prepare a statement of changes in equity for the year ended December 31, 2020, assuming profit earned during the year was $4,784,000.

2. Prepare the equity section of the December 31, 2020, balance sheet.

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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