Prepare the shareholders equity section of the statement

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Question - At the beginning of 2018, the shareholders' equity section of the statement of financial position of Ponti Corporation reflected the following:

Common shares, no par value, authorized unlimited number of shares, issued and outstanding 36,100 shares $361,000

Retained earnings 752,000

On February 1, 2018, the board of directors declared a 100 percent stock dividend to be issued on April 30, 2018. The price per common share was $19 on February 1, 2018.

Required - For comparative purposes, prepare the shareholders' equity section of the statement of financial position (a) before the stock dividend and (b) after the stock dividend.

Reference no: EM132513417

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