Brown Nose Corporation's shareholders' equity section at December 31, 2020 appears below:

Shareholders' equity

Common shares, no par value, 50,000 shares issued$600,000Retained earnings150,000Total shareholders' equity$750,000

On June 30, 2021, the board of directors of Brown Nose Corporation declared a 10% stock dividend, payable on July 31, 2021, to shareholders of record on July 15, 2021. The fair market value of Brown Nose Corporation's shares on June 30, 2021, was $12 per share.

On December 1, 2021, the board of directors declared a 2-for-1 stock split effective December 15, 2021. Brown Nose Corporation's shares were selling for $16 on December 1, 2021, before the stock split was declared. Profit for 2021 was $225,000 and there were no cash dividends declared.

Instructions

a)Prepare the journal entries on the appropriate dates to record the stock dividend and the stocksplit.

b)Fill in the amount that would appear in the shareholders' equity section for Brown NoseCorporation at December 31, 2021, for the following items:

1.Common shares$________2.Number of shares issued$________3.Retained earnings$________4.Total shareholders' equity$________