Question: The shareholders' equity for Blade, Inc. on December 31, 2014, follows: Shareholders' Equity Share Capital: Common Shares, 100,000 shares authorized, 50,000 shares issued and outstanding

The shareholders' equity for Blade, Inc. on December 31, 2014, follows:

Shareholders' Equity

Share Capital:

Common Shares, 100,000 shares authorized,

50,000 shares issued and outstanding ...........................$450,000

Total Share Capital .................................................$450,000

Retained Earnings ................................................. 120,000

Total Shareholders' Equity .......................................$570,000

On April 30, 2015, the market price of Blade's common shares was $16 per share and the company distributed a 10% stock dividend.

Requirements

1. Journalize the declaration and distribution of the stock dividend.

2. Prepare the shareholders' equity section of the statement of financial position after the stock dividend.

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