On December 31, 2015, the shareholders' equity section of RUB Corporation reflected the following Common stock (par P10; authorized 60,000 shares, outstanding 25,000 shares) Additional paid-in capital Retained earnings P250,000 April 30, 2016. The market value of the stock on February 1 was P18. On February 1, 2016, the Board of directors declared a 10% stock dividends to be issued 12,000 75,000 Prepare the required entries for the declaration and distribution. b. Prepare the shareholders' equity section immediately after the stock dividend was Direction: 2. 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. declared. C.
7. Use the information in Exercise 6, but assume instead that a 20% 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.
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