The stockholders' equity for Rightwell Corporation on June 16, 2017, follows: On June 16, 2017. the market

Question:

The stockholders' equity for Rightwell on June 16, 2017, follows:

The stockholders' equity for Rightwell Corporation on June 16, 2017,

On June 16, 2017. the market price of Rightwell common stock was $18 per share. Assume Rightwell declared and distributed a 12% stock dividend on this date.
Requirements
1. Journalize the declaration and distribution of the stock dividend.
2. Prepare the stockholders' equity section of the balance sheet after the stock dividend.
3. Why is total stockholders' equity unchanged by the stock dividend?
4. Suppose Rightwell had a cash balance of $550,000 on June 17, 2017. What is the maximum amount of cash dividends Rightwell can declare?

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