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Question - The shareholder's equity for Julie's Occupational Therapy Limited on 30 June is as shown. On 31 October, the market price of Julie's Occupational Therapy ordinary shares were $5.54 per share and the company distributed a dividend of $3,878 to be satisfied by the issue of further shares valued at $5.54 each.
Shareholder's equity
Share Capital: 530 Ordinary shares $ 2,650
Retained earnings $121,000
Total shareholder's equity $123,650
Required -
Journalise the distribution of the share dividend.
Prepare the shareholder's equity section of the balance sheet after the share dividend.
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