Homework Answers
Solution:
LO4:
Given that the following information
a) Journal entry
|
No |
Account and explanation |
debit |
credit |
|
1. |
Cash dividend |
1000 |
|
|
dividend payable |
1000 |
||
|
(To record dividend declared) |
|||
|
2. |
Dividend payable |
1000 |
|
|
Cash |
1000 |
||
|
(To record dividend paid) |
b) Some companies issue stock dividend rather than cash dividend because stock dividend does not reduced stockholder's equity while cash dividend reduced stockholder's equity
c) Number of share after split = 100000*2 = 200000
Par value per share after split = 2/2 = 1 per share
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