On April 1, 2023, 400,000 common shares were issued at $0.90 per share. On June 1, the board of directors declared a 10% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.58, $2.06, and $2.36, respectively. On December 11, the board of directors declared a 2:1 share split to shareholders of record on December 15; the distribution date was December 20. Profit earned during the year was $1,547,500. Required: Prepare the company's equity section on the December 31, 2023, balance sheet.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On April 1, 2023, 400,000 common shares were issued at $0.90 per share. On
June 1, the board of directors declared a 10% share dividend to shareholders of
record on June 15; the distribution date was July 1. The market prices of the
shares on June 1, June 15, and July 1 were $2.58, $2.06, and $2.36, respectively.
On December 11, the board of directors declared a 2:1 share split to shareholders
of record on December 15; the distribution date was December 20. Profit earned
during the year was $1,547,500. Required: Prepare the company's equity section
on the December 31, 2023, balance sheet.
Transcribed Image Text:On April 1, 2023, 400,000 common shares were issued at $0.90 per share. On June 1, the board of directors declared a 10% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.58, $2.06, and $2.36, respectively. On December 11, the board of directors declared a 2:1 share split to shareholders of record on December 15; the distribution date was December 20. Profit earned during the year was $1,547,500. Required: Prepare the company's equity section on the December 31, 2023, balance sheet.
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