EverClean Corporation Reported the Following Shareholders' Equity on January 1,2017

question 109

Essay

EverClean Corporation reported the following shareholders' equity on January 1,2017:
Contributed capital
$\begin{array}{lr}\text {Preferred shares, \( \$ 2.50 \), cumulative, 30,000}\\\text {shares authorized, 7,500 shares issued}& \$ 393,750 \\\text {Common shares, 200,000 shares}\\\text { authorized, } 135,000 \text { shares issued } & \underline{607,500} \\\text { Total contributed capital } & 1,001,250 \\\text { Retained earnings } & \underline{218,500} \\\text { Total shareholders' equity } &\underline{ \$ 1,219,750}\end{array}$
a_On October 15,2017,the board of directors declared a 5% common stock dividend when the market price of the shares was $10.00 per share.On November 15,2017,the stock dividend was distributed to the shareholders.Prepare the necessary journal entries to record the declaration and distribution of the common stock dividend.
b_What effect did the declaration of the common stock dividend have on:
$\begin{array}{l}\text { 1) total assets } \\\text { 2) total liabilities } \\\text { 3) total contributed capital } \\\text { 4) total retained earnings } \\\text { 5) total shareholders' equity }\end{array}$ $$\begin{array}{l}\text { General Jaurnal }\\\begin{array} { c | c | c | c } \hline \text { Date } & \text { Accounts } & \text { Debit } & \text { Credit } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & &\end{array}\end{array}$$

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Definitions:

Carolingian Empire

A large Frankish-dominated empire in Western and Central Europe during the early medieval period, founded by Charlemagne in 800 AD.

Ottonians

Pertaining to the dynasty that ruled the Germanic Holy Roman Empire from the 10th to the early 11th century, known for its contributions to pre-Romanesque art and architecture.

Hiberno-Saxon

An art style that flourished in the monasteries of the British Isles in the early Middle Ages. Also called Insular.

Medieval Monasteries

Religious communities or buildings where monks or nuns live, work, and pray, prevalent during the medieval period across Europe.