Chapter 6
Corporations: Contributed Capital and Dividends
303
Required
a) Calculate the ending balance of retained earnings after the stock dividend.
b) Prepare the shareholders’ equity section of balance sheet as at May 31, 2016 (after the
stock dividend has been distributed).
Scenario 2
May 31 After preparing the shareholders’ equity section shown at the beginning
of this question, the company implemented a 2-for-1 stock split.
c) Calculate the number of outstanding shares.
