Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared a 10% common share dividend on June 30, 2020, distributable on July 15, 2020. Because performance during 2020 was better than expected, the companys board of directors declared a $1.20 per share cash dividend on November 15, 2020, payable on December 1, 2020, to shareholders of record on November 30, 2020. The equity section of Pacificas December 31, 2019, balance sheet showed

Common shares, unlimited shares authorized, 600,000 shares issued and outstanding	$	5,760,000
Retained earnings		3,300,000

1)Journalize the declaration of the share dividend. The market prices of the shares were $17.90 on June 30, 2020, and $19.80 on July 15, 2020. Assume share dividends account is used when dividends are declared.

No	Date	General Journal	Debit	Credit
1	June 30, 2020	Share dividendsselected answer correct	1,074,000selected answer correct	not attempted
		Common share dividends distributableselected answer correct	not attempted	1,074,000

2) Journalize the declaration of the cash dividend. Assume share dividends account is used when dividends are declared.

3) Prepare the equity section of the balance sheet at December 31, 2020, assuming profit earned during the year was $3,389,000.