On December 31, 2015, the shareholders equity section of the statement of financial position of R & B Corporation reflected the following:

Common shares (no par value, authorized 60,000 shares,
outstanding 30,000 shares)	$	360,000
Contributed surplus		12,000
Retained earnings		175,000
Accumulated other comprehensive income		28,000

On February 1, 2016, the board of directors declared a 10 percent stock dividend to be issued April 30, 2016. The market value per share was $18 on the declaration date.

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 the companys assets, liabilities, and shareholders equity. (Indicate the direction of the effect by selecting increase, decrease, or "No change" for no effect from the dropdown menu.)