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With explanations how to get the numbers, please. Thank you! On December 31, 2016, the shareholders' equity section of the balance sheet of R&L Corporation
With explanations how to get the numbers, please. Thank you!
On December 31, 2016, the shareholders' equity section of the balance sheet of R&L Corporation reflected the following: Common shares (no-par value; authorized 60,000 shares, outstanding 27,000 shares) Contributed surplus Retained earnings $ 270,000 12,200 77,000 On February 1, 2017, the board of directors declared a 8 percent stock dividend to be issued on April 30, 2017. The market value of the shares on February 1, 2017, was $19.00 per share. Required: 1. For comparative purposes, prepare the shareholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. (Amounts to be deducted should be indicated with a minus sign.) Required: 1. For comparative purposes, prepare the shareholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Shareholders' Equity Before Stock Dividend Adjustment After Stock Dividend Contributed capital Common shares $ 270,000 $ Dividends Contributed surplus Total contributed capital Retained earnings 11,700 X 281,700 77,000 0 X $ 270,000 X 410,400 X 410,400 X 11,700 410,400 692,100 77,000 X (410,400) X (410,400) 0 $ 358,700 Dividends Total shareholders' equity $ 358,700 $Step by Step Solution
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