The shareholders' equity of Tirana Ltd.at July 31, 2014 is presented below: Common shares, no par value, authorized 400,000 shares, On August 1, 2014, the board of directors declared a 10% stock dividend, to be distributed on September 15.The market price of Tirana's common shares was $35 on August 1 and $38 on September 15.What is the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

Question

The shareholders' equity of Tirana Ltd.at July 31, 2014 is presented below: Common shares, no par value, authorized 400,000 shares,  On August 1, 2014, the board of directors declared a 10% stock dividend, to be distributed on September 15.The market price of Tirana's common shares was $35 on August 1 and $38 on September 15.What is the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

Quizplus · Accepted Answer

The Answer of The shareholders' equity of Tirana Ltd.at July 31, 2014 is presented below: Common shares, no par value, authorized 400,000 shares,  On August 1, 2014, the board of directors declared a 10% stock dividend, to be distributed on September 15.The market price of Tirana's common shares was $35 on August 1 and $38 on September 15.What is the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

The Shareholders' Equity of Tirana Ltd