ABC Corp. has 500,000 shares of P10 par ordinary share capital outstanding as of October 1,...
ABC Corp. has 500,000 shares of P10 par ordinary share
capital outstanding as of October 1, 2010. On this date, the Board
of directors declared a share capital dividend distributable on
November 20, 2010 to shareholders of record of October 30. The
Market price of each ordinary share is P25 on October 1; P23 on
October 30 and P30 on November 20.
Instructions: Prepare the entries to record the declaration and
distribution of stock dividends under each of the following
independent assumpions:
1. A 15% share capital dividend was declared and issued
2. A 30% share capital dividend was declared and issued
ABC Corp. reports the following balances as of January 1,
2010:
Ordinary share capital, P25 par, 2,000 shares outstanding
P50,000
Ordinary share premium 20,000
Retained earnings 150,000
The following dividend declarations were made during the
year:
Mar 15 Declared a cash dividend of P5 per share payable on April 15
to shareholders of record of March 31.
July 15 Declared as dividends stocks of Pentagon Corp. owned by ABC
Corp. One share of Pentagon Corp. stock will be distributed for
every share of ABC Corp. stock owned. The stocks of Pentagon have a
carrying value of P20 per share and fair value of P25.
October 15 Declared 30% stock dividend distributable on December 1
to shareholders of record of November 15. Stocks were selling on
this date at P50 per share.
Instructions: Record the declaration and distribution of
dividends.
Homework Answers
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ABC Corp. has 500,000 shares of P10 par ordinary share
capital outstanding as of October 1,...
ABC Corp. reports the following balances as of January 1, 2010: Ordinary share capital, P25 par,...
ABC Corp. reports the following balances as of January 1, 2010: Ordinary share capital, P25 par, 2,000 shares outstandingP50,000 Ordinary share premium 20,000 Retained earnings 150,000 The following dividend declarations were made during the year: Mar 15 Declared a cash dividend of P5 per share payable on April 15 to shareholders of record of March 31. July 15 Declared as dividends stocks of Pentagon Corp. owned by ABC Corp. One share of Pentagon Corp. stock will be distributed for every...
need answer asap ABC Corp. reports the following balances as of January 1, 2010: Ordinary share...
need answer asap
ABC Corp. reports the following balances as of January 1, 2010: Ordinary share capital, P25 par, 2,000 shares outstandingP50,000 Ordinary share premium 20,000 Retained earnings 150,000 The following dividend declarations were made during the year: Mar 15 Declared a cash dividend of P5 per share payable on April 15 to shareholders of record of March 31. July 15 Declared as dividends stocks of Pentagon Corp. owned by ABC Corp. One share of Pentagon Corp. stock will be...
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need answer asap
ABC Corp. reports the following balances as of January 1, 2010: Ordinary share capital, P25 par, 2,000 shares outstandingP50,000 Ordinary share premium 20,000 Retained earnings 150,000 The following dividend declarations were made during the year: Mar 15 Declared a cash dividend of P5 per share payable on April 15 to shareholders of record of March 31. July 15 Declared as dividends stocks of Pentagon Corp. owned by ABC Corp. One share of Pentagon Corp. stock will be...
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