7.
Use the information in Exercise 6
, but assume instead that a
2
0% stock dividend was declared.
Answer the same requirements.
(see attached images especially for the
information in Exercise 6
in the uploaded images. Please answer it based on your knowledge. thank you so much!)
NOTE: only letter C and D is the unanswered so please answer it thank you!
a) Prepare the required entries to for the declaration and distribution.
b) Prepare the shareholders’ equity section immediately after the stock dividend was declared.
c) Compare with the accounts and figures given above and explain the effects of this stock dividend on the a) assets, b) liabilities, and c) shareholders' equity.
d) Prepare again the shareholders' equity immediately after the stock dividend was distributed. Compare the accounts against no 1 above and explain the effects of this distribution on the a) assets, b) liabilities, and c) shareholders' equity.
Extracted text: 1 Use the information in Exercise 6, but assume instead that a 20% stock dividend was ot of the shoreholdere
Extracted text: On February 1, 2016, the Board of directors declared a 10% stock dividends to be issued b. Prepare the shareholders' equity section immediately after the stock dividend was d Prepare again the shareholders' equity immediately after the stock dividend was On 31, 2015, the shareholders' equity section of RUB Corporation reflected Common stock (par P10; authorized 60,000 shares, distributed. Compare the accounts against no. 1 above and explain the effects of this c. Compare with the accounts and figures given above and explain the effects of this stock dividend on the a) assets, b) liabilities, and c) shareholders' equity. distribution on the a) assets, b) liabilities, and c) shareholders' equity. following outstanding 25,000 shares) Additional paid-in capital Retained earnings the follow P250,000 12,000 75,000 on Direction: declared