Trendy Corp.recently declared a 10% share dividend.As of the date of the announcement,Trendy had 10 million shares outstanding,which were selling on the NYSE for $50 per share.An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the ordinary shares and additional paid-in capital accounts.What is the dollar amount of retained earnings that will be transferred from retained earnings to the ordinary shares account as the result of the share dividend? Assume that the par value of Trendy is $2 per share.

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The Answer of Trendy Corp.recently declared a 10% share dividend.As of the date of the announcement,Trendy had 10 million shares outstanding,which were selling on the NYSE for $50 per share.An accounting entry is required on the balance sheet in order to transfer an amount from retained earnings to the ordinary shares and additional paid-in capital accounts.What is the dollar amount of retained earnings that will be transferred from retained earnings to the ordinary shares account as the result of the share dividend? Assume that the par value of Trendy is $2 per share.