Please Help!! :) On December 31, 2011, the shareholders1 equity section of the b

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Please Help!! :)

On December 31, 2011, the shareholders1 equity section of the balance sheet of R & L Corporation reflected the following: On February 1, 2012, the board of directors declared a 13 percent stock dividend to be issued April 30, 2012. The market value of the shares on February 1, 2012, was $16 per share. Required: For comparative purposes, prepare the shareholders1 equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. (Omit the "$" sign in your response.)

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

Shareholder's Equity
Before Stock Dividend After Stock Dividend Contributed Capital

Common Shares, par $10, Authorized 278000 361200 Additional Paid In Capital 17600 67520
295600 428720 Retained Earnings 103000 -30120 Total Shareholder's Equity 398600 398600

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