2. An entity showed the following data: Share capital, par value P10, 25,000 shares issued 250,000 Share Premium 50,000 Retained Earnings 150,000 Market value of share on declaration date 20 Market value of share on distribution date 40 a. If a 10% share dividend will be declared, what amount of retained earnings will be capitalized? Prepare the entries on declaration and distribution date. b. If a 25% share dividend will be declared, what amount will be charged to retained earnings? Prepare the entries on declaration and distribution date
2. An entity showed the following data: Share capital, par value P10, 25,000 shares issued 250,000 Share Premium 50,000 Retained Earnings 150,000 Market value of share on declaration date 20 Market value of share on distribution date 40 a. If a 10% share dividend will be declared, what amount of retained earnings will be capitalized? Prepare the entries on declaration and distribution date. b. If a 25% share dividend will be declared, what amount will be charged to retained earnings? Prepare the entries on declaration and distribution date
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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2. An entity showed the following data:
Share capital, par value P10, 25,000 shares issued 250,000
Share Premium 50,000
Retained Earnings 150,000
Market value of share on declaration date 20
Market value of share on distribution date 40
a. If a 10% share dividend will be declared, what amount of retained earnings will be
capitalized? Prepare the entries on declaration and distribution date.
b. If a 25% share dividend will be declared, what amount will be charged to retained
earnings? Prepare the entries on declaration and distribution date
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