Shareholders' equity Share capital Common shares, 82,000 issued Retained earnings Accumulated other comprehensive income Total...
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Shareholders' equity Share capital Common shares, 82,000 issued Retained earnings Accumulated other comprehensive income Total shareholders' equity $ 799,860 150,000 450,000 $1,399,860 On June 30, 2020, the board of directors declared a 15% stock dividend, distributable on July 31 to shareholders of record on July 15. The fair value of Starfish Corporation's shares on June 30 was $14. An unlimited number of shares have been authorized. On December 1, 2020, the board of directors declared a 2 for 1 stock split effective December 15. Starfish Corporation's shares were selling for $20 on December 1, 2020, before the stock split was declared. Net income for 2020 was $230,000 and there were no cash dividends declared. Instructions (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (6 marks) (b) Prepare all closing entries required on December 31, 2020. (4 marks) (c) Please answer the following as it relates to the Shareholder's Equity accounts @ December 31, 2020. (5 marks) a. What is the value of the common shares? b. How many shares are outstanding? c. What is the legal capital per share? d. What is the retained earnings balance? e. What is the total shareholder's equity
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