Harvey Hovercraft Inc. reported the following shareholders' equity:
Share capital: Instructions
a) The board of directors declared a 5% common stock dividend when the market price of the shares was $ 20 per share. Prepare the necessary journal entries to record the declaration and distribution of the common shares dividend.
b) What effect did the stock dividend have on:
i. total assets
ii. total liabilities
iii. total share capital
iv. total shareholders' equity

Question

Harvey Hovercraft Inc. reported the following shareholders' equity:
Share capital:  Instructions 
a) The board of directors declared a 5% common stock dividend when the market price of the shares was $ 20 per share. Prepare the necessary journal entries to record the declaration and distribution of the common shares dividend.
b) What effect did the stock dividend have on:
i. total assets
ii. total liabilities
iii. total share capital
iv. total shareholders' equity

Quizplus · Accepted Answer

The Answer of Harvey Hovercraft Inc. reported the following shareholders' equity:
Share capital:  Instructions 
a) The board of directors declared a 5% common stock dividend when the market price of the shares was $ 20 per share. Prepare the necessary journal entries to record the declaration and distribution of the common shares dividend.
b) What effect did the stock dividend have on:
i. total assets
ii. total liabilities
iii. total share capital
iv. total shareholders' equity

Harvey Hovercraft Inc. Reported the Following Shareholders' Equity