At the beginning of 2015, the shareholders equity section of the statement of financial position of Ponti Corporation reflected the following Common shares, no par value, authorized unlimited number of shares, issued and outstanding 38,000 shares $ 380,000 Retained earnings 790,000 On February 1, 2015, the board of directors declared a 100 percent stock dividend to be issued on April 30, 2015 The price per common share was $19 on February 1, 2015 Required 1 For comparative purposes, prepare the shareholders equity section of the statement of financial position (a) before the stock dividend and (b) after the stock dividend 2 Determine the effects of this stock dividend on assets, liabilities, total shareholders equity, retained earnings and share capital (Indicate the direction of the effect by selecting increase, decrease, or No change Required 1 Fer mmparatjve purposes, prepare the ehareheldere' equin section of the etetement of nancial pesitien a hefdre the steak dividend and h after the steak dividend Share ca pital Outstanding 33$ ) shares Outstanding T shares Retained ea minge Tetal eha rehelders' equityr

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

At the beginning of 2015, the shareholders? equity section of the statement of financial position of Ponti Corporation reflected the following: Common shares, no par

At the beginning of 2015, the shareholders? equity section of the statement of financial position of Ponti Corporation reflected the following:


Common shares, no par value, authorized unlimited
number of shares, issued and outstanding 38,000 shares	$	380,000
Retained earnings		790,000

On February 1, 2015, the board of directors declared a 100 percent stock dividend to be issued on April 30, 2015. The price per common share was $19 on February 1, 2015.

Required:
1.	For comparative purposes, prepare the shareholders? equity section of the statement of financial position (a) before the stock dividend and (b) after the stock dividend.

2.	Determine the effects of this stock dividend on assets, liabilities, total shareholders? equity, retained earnings and share capital.(Indicate the direction of the effect by selecting increase, decrease, or "No change"

Required: 1. Fer mmparatjve purposes, prepare the ehareheldere' equin section of the etetement of nancial pesitien [a] hefdre the steak dividend and [h] after the steak dividend. Share ca pital: Outstanding 33$!!!) shares Outstanding T shares Retained ea minge Tetal eha rehelders' equityr