Brown Nose Corporation's shareholders' equity section at December 31, 2020 appears below:
Shareholders' equity On June 30, 2021, the board of directors of Brown Nose Corporation declared a 10% stock dividend, payable on July 31, 2021, to shareholders of record on July 15, 2021. The fair market value of Brown Nose Corporation's shares on June 30, 2021, was $ 12 per share.
On December 1, 2021, the board of directors declared a 2-for-1 stock split effective December 15, 2021. Brown Nose Corporation's shares were selling for $ 16 on December 1, 2021, before the stock split was declared. Profit for 2021 was $ 225,000 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.
b) Fill in the amount that would appear in the shareholders' equity section for Brown Nose Corporation at December 31, 2021, for the following items:
1. Common shares $____________
2. Number of shares issued $____________
3. Retained earnings $____________
4. Total shareholders' equity $____________
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 Brown Nose Corporation at December 31, 2021, for the following items:

Question

Brown Nose Corporation's shareholders' equity section at December 31, 2020 appears below:
Shareholders' equity  On June 30, 2021, the board of directors of Brown Nose Corporation declared a 10% stock dividend, payable on July 31, 2021, to shareholders of record on July 15, 2021. The fair market value of Brown Nose Corporation's shares on June 30, 2021, was $ 12 per share.
On December 1, 2021, the board of directors declared a 2-for-1 stock split effective December 15, 2021. Brown Nose Corporation's shares were selling for $ 16 on December 1, 2021, before the stock split was declared. Profit for 2021 was $ 225,000 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.
b) Fill in the amount that would appear in the shareholders' equity section for Brown Nose Corporation at December 31, 2021, for the following items:
1. Common shares $____________
2. Number of shares issued $____________
3. Retained earnings $____________
4. Total shareholders' equity $____________ 
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 Brown Nose Corporation at December 31, 2021, for the following items:

Quizplus · Accepted Answer

The Answer of Brown Nose Corporation's shareholders' equity section at December 31, 2020 appears below:
Shareholders' equity  On June 30, 2021, the board of directors of Brown Nose Corporation declared a 10% stock dividend, payable on July 31, 2021, to shareholders of record on July 15, 2021. The fair market value of Brown Nose Corporation's shares on June 30, 2021, was $ 12 per share.
On December 1, 2021, the board of directors declared a 2-for-1 stock split effective December 15, 2021. Brown Nose Corporation's shares were selling for $ 16 on December 1, 2021, before the stock split was declared. Profit for 2021 was $ 225,000 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.
b) Fill in the amount that would appear in the shareholders' equity section for Brown Nose Corporation at December 31, 2021, for the following items:
1. Common shares $____________
2. Number of shares issued $____________
3. Retained earnings $____________
4. Total shareholders' equity $____________ 
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 Brown Nose Corporation at December 31, 2021, for the following items:

Brown Nose Corporation's Shareholders' Equity Section at December 31, 2020