On January 1, 2020, Proven Technology Corporation's common shares account had a balance of $250,000, representing 25,000 shares issued at $10 per share. On May 15, 2020, 12,000 shares were
Issued for $150,000 cash. On August 31, 2020, a 10% stock dividend was declared and distributed. What is the balance in Common Shares appearing on the statement of shareholders' equity on December 31, 2020?

Question

Quizplus · Accepted Answer

The initial balance is $250,000. Issuing 12,000 shares at $150,000 increases it to $400,000. The 10% stock dividend on 37,000 shares (25,000 + 12,000) is 3,700 shares at $10 each, adding $37,000, totaling $440,000.

On January 1, 2020, Proven Technology Corporation's Common Shares Account