Valerie Compnay showed the following data:
Share capital, par value P100, 50,000 shares issued 5,000,000
Share premium 200,000
Retained earnings 2,000,000
Market value of share on declaration date 150
Market value of share on disctribution date 100
For each of the following, prepare journal entries on the date of declaration and date of payment:
a. 20% stock dividend Large stock dividend Par
b. 10% stock dividend Small stock dividend FV
Date of declaration
a Retained earnings 1,000,000
Stock dividends payable 1,000,000
b Retained earnings 750,000
Stock dividends payable 500,000
Share premium 250,000
and date of payment:
Date of payment
Stock dividends payable 1,000,000
Share capital 1,000,000
Stock dividends payable 750,000
Share capital 500,000
On November 1, 2021, an entity declared a property dividend of equipment payable on March 1, 2022.
The carrying amount of the equipment is P3,000,000 and the fair value is P2,500,000 on November 1, 2021.
However, the fair value less cost to distribute the equipment is P2,200,000 on December 31, 2021 and P2,000,00
Prepare the journal entries for the declaration and settlement of property dividends.
Liability
11/1/2021 Retained earnings 2,500,000
Property dividends payable 2,500,000
12/31/2021 Property dividends payable 300,000
Retained earnings 300,000
3/1/2022 Property dividends payable 200,000
Retained earnings 200,000
Property dividends payable 2,000,000
Loss on distribution of PDP 200,000
Equipment 2,200,000
Value of PDP
(Carrying of the equipment)
Gain/loss
ble on March 1, 2022.
00 on November 1, 2021.
ember 31, 2021 and P2,000,000 on March 1, 2022.
Asset
No entry
Impairment loss 800,000
Equipment 800,000
No entry
During 2021, Ray Company reported the following cash dividends on the P10 par value share capital:
1st quarter 800,000
2nd quarter 900,000
3rd quarter 1,000,000
4th quarter 1,100,000
3,800,000
The 4th quarter cash dividend was declared on December 20, 2021 to shareholders of record December 31, 2021 p
on January 31, 2022. In addition, the entity declared a 5% stock dividend on December 1, 2021 when there were 30
and outstanding and the market value was P20 per share on declaration date and P25 on distribution date. The sha
What was the effect on shareholder's equity accounts as a result of the dividend transactions?
Share capital 150,000
Share premium 150,000
Retained earnings 4,100,000
Retained earnings 3,800,000
Cash dividends payable 3,800,000
Retained earnings 300,000
Stock dividends payable 150,000
Share premium 150,000
ue share capital:
of record December 31, 2021 payable
er 1, 2021 when there were 300,000 shares issued
5 on distribution date. The shares were issued on December 21, 2021.
Franta Company was authorized to issue share capital of 100,000 shares with P50 par value on January 1, 2021. Eig
were sold during the first year at P50 per share and 4,000 shares were reacquired as treasury at P65 per share. A sh
December 31, 2021. On January 31, 2022, a 10% stock dividend was paid and on March 1, 2022, the treasury share
What is the number of shares issued and outstanding on March 1, 2022.
Issued and outstanding shares 80,000
Treasury shares (4,000)
Total 76,000
After share split 380,000
Outstanding shares as of January 31 418,000
Treasury shares 20,000
438,000
ar value on January 1, 2021. Eighty thousand shares
s treasury at P65 per share. A share split of 5 for 1 was approved on
arch 1, 2022, the treasury shares were reissued at P68 per share.
On January 1, 2021, the board of directors of Blake Company declared a cash dividend of P800,000 to shareholders
record on January 15, 2021, and payable on February 15, 2021
The entity reported the following data on December 31, 2021:
Accumulated depletion 500,000
Share capital 9,000,000
Share premium 300,000
Retained earnings 600,000
Net income for 2021 150,000
What amount should be reported as liquidating dividend?
Dividends to be distributed 800,000
Retained earnings -600,000
Liquidating dividend 200,000
end of P800,000 to shareholders of
