On February 1,2020, the board of directors declared a 8 percent stock dividend to be issued on April 30, 2020. The market value of the shares on February 1, 2020, was $19.00 per share. Required: 1. For comparative purposes, prepare the shareholders' equity section of the balance sheet (a) immediately before the stock dividend and (b) immediately after the stock dividend. (Amounts to be deducted shouid be indicated with a minus sign.) 2. Which of the following statement(s) are true consequent upon the declaration of stock dividend? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Total assets will not change. 2. Total llabilites will not change. Total shareholders' equity wil change. Retained earnings wil be reduced by the amount of dividend. ? Common stock and Additional paid-in copital will not change. Accounts payable Accounts receivable Bond payable Cash Common shares Contributed surplus Dividends Interest revenue Note payable Note receivable Interest revenue Note payable Note receivable Rent expense Retained earnings
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