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Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared a 1 0 % common share dividend
Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared a common share dividend on June distributable on July Because performance during was better than expected, the companys board of directors declared a $ per share cash dividend on November payable on December to shareholders of record on November The equity section of Pacificas December balance sheet showed:
Common shares, unlimited shares authorized, shares issued and outstanding $
Retained earnings
Required:
Journalize the declaration of the share dividend. The market prices of the shares were $ on June and $ on July Assume share dividends account is used when dividends are declared.
Journalize the declaration of the cash dividend. Assume share dividends account is used when dividends are declared.
Prepare the equity section of the balance sheet at December assuming profit earned during the year was $
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