Prepare the shareholders equity section of the balance sheet

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Question - On December 31, 2019, the shareholders' equity section of the balance sheet of R & L Corporation reflected the following:

Common shares (no-par value; authorized 60,000 shares; outstanding 15,000 shares) $150,000

Contributed surplus 11,000

Retained earnings 65,000

On February 1, 2020, the board of directors declared a 8 percent stock dividend to be issued on April 30, 2020. The market value of the shares on February 1, 2020, was $13.00 per share.

Required - For comparative purposes, prepare the shareholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend.

Reference no: EM133173788

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