Dividend Distribution Assignment – Brescia Corporation Brescia Corporation's shareholders' equity section at December 31, 2021 appears below: Shareholders' equity Common shares, no par value, 50,000 shares issued Retained earnings Total shareholders' equity $600,000 150,000 $750,000 On June 30, 2022, the board of directors of Holiday Travel Corporation declared a 10% stock dividend, payable on July 31, 2022, to shareholders of record on July 15, 2022. The fair market value of Brescia Corporation's shares on June 30, 2022, was $12 per share. On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December 15, 2022. Holiday Travel Corporation's shares were selling for $16 on December 1, 2022, before the stock split was declared. Net income for 2022 was $225,000 and there were no cash dividends declared. (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (b) Fill in the amount that would appear in the shareholders' equity section for Brescia Corporation at December 31, 2022, for the following items: 1. Common shares $. 2. Number of shares issued 3. Retained earnings $. 4. Total shareholders' equity $.
Dividend Distribution Assignment – Brescia Corporation Brescia Corporation's shareholders' equity section at December 31, 2021 appears below: Shareholders' equity Common shares, no par value, 50,000 shares issued Retained earnings Total shareholders' equity $600,000 150,000 $750,000 On June 30, 2022, the board of directors of Holiday Travel Corporation declared a 10% stock dividend, payable on July 31, 2022, to shareholders of record on July 15, 2022. The fair market value of Brescia Corporation's shares on June 30, 2022, was $12 per share. On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December 15, 2022. Holiday Travel Corporation's shares were selling for $16 on December 1, 2022, before the stock split was declared. Net income for 2022 was $225,000 and there were no cash dividends declared. (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (b) Fill in the amount that would appear in the shareholders' equity section for Brescia Corporation at December 31, 2022, for the following items: 1. Common shares $. 2. Number of shares issued 3. Retained earnings $. 4. Total shareholders' equity $.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dividend Distribution Assignment – Brescia Corporation
Brescia Corporation's shareholders' equity section at December 31, 2021 appears below:
Shareholders' equity
Common shares, no par value, 50,000 shares issued
Retained earnings
Total shareholders' equity
$600,000
150,000
$750.000
On June 30, 2022, the board of directors of Holiday Travel Corporation declared a 10% stock
dividend, payable on July 31, 2022, to shareholders of record on July 15, 2022. The fair market
value of Brescia Corporation's shares on June 30, 2022, was $12 per share.
On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December
15, 2022. Holiday Travel Corporation's shares were selling for $16 on December 1, 2022, before
the stock split was declared. Net income for 2022 was $225,000 and there were no cash
dividends declared.
(a) Prepare the journal entries on the appropriate dates to record the stock dividend and the
stock split.
(b) Fill in the amount that would appear in the shareholders' equity section for Brescia
Corporation at December 31, 2022, for the following items:
1. Common shares
$
2. Number of shares issued
3. Retained earnings
$.
4. Total shareholders' equity
$
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