Reference no: EM131067263
The Shareholders' Equity category of Diddlysquat Company's balance sheet as of January 1, 2015 appeared as follows:
Question
The Shareholders Equity category of Diddlysquat Company's balance sheet as of January I. 2015, appeared as follows:
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Common stock,
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40,000 no par shares issued and outstanding
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S500,000
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Retained earnings
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490,00I2
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Total shareholders' equity
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S900,000
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The following transactions occurred during 2015:
a. Declared a 15% stock dividend to common shareholders on January 15. At the time of the dividend, the common shares were selling for S30 per share. The stock dividend was to be issued to shareholders on February 14, 2015.
b. Distributed the stock dividend to the shareholders on February 14, 2015.
Required
1. Record the 2015 transactions in journal form.
2. Develop the Shareholders' Equity section of Diddlysquat Company's balance sheet as of February 14, 2015, after the stock dividend was issued. What effect did these transactions have on total shareholders' equity?
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