30. The market price of each ordinary share is 27 on October 1, 24 pesos on October 30 and 35 pesos on November 20 Instructions:prepare the entries to record the declaration and distribution of stock dividends under each of the following assumptions 1. A 18% share capital dividend was declared and issued 2. A 50% share capital dividend was declared and issued

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A: The question is based on the concept of Financial Accounting.

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A: Formula: Share capital = Number of shares issued x Issue price.

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A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…

Q: n April 8, 2019, GODLY Corporation declared and issued a 25% ordinary share capital dividend. Prior…

A: The amount to be debited to retained earnings will be equal to the total par value of shares issued…

Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…

A: Note: There will ve no change in paid-up capital and additional paid-in capital balance due to…

Q: During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire…

A: Basic Earnings Per share = Earnings Available for Ordinary Share holders/Number of Ordinary Shares…

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A: Journal Entries:

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A: The stock dividend leads to increase the number of shares issued and outstanding.

Q: On April 1,2020, ABC Corporation, a newly formed company, had the following shares issued and…

A: Legal Capital is that part of the equity stock owners who are not allowed to liquidate their…

Q: Goodwill Corporation was authorized to issue 60,000, P100 par value ordinary share capital on…

A: Authorized share capital—also known as "authorized stock," "authorized shares," or "authorized…

Q: Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share…

A: RE refers to Retained Earnings which is the amount of NI (Net Income) that is left or retained by…

Q: 2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s…

A: Explanation of Concept Dividend is the part of earning which is been distributed to the shareholder…

Q: On June 1, 2020, Golden Warriors Corporation declared a share capital dividend entitling its…

A: The dividend is declared to the shareholders from the retained earnings of the business.  The…

Q: Determine the balance of share premium to be reported in statement of financial position for the…

A: Share premium :          As the name suggests, it is the premium amount paid by the subscribers or…

Q: On December 31, 2021, WHITE Company reports the following amounts in its shareholders' equity…

A: The book value per share is calculated as shareholders' equity divided by number of issued and…

Q: During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares…

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A: Retained earnings is increases with net income and decreases with net loss . Also the dividends…

Q: On August 15, 2021, EasyMoney, Inc.s Board of Directors meets and declares that EasyMoney will pay a…

A: Retained earnings refers to the account that accumulates the earnings of the company that are not…

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A: The stock dividend is a method of capitalizing the retained earnings. it is issued in a proportion…

Q: On January 1, 2021, had 2, 000, 0000 ordinary shares outstanding. On July 1, 2021, the entity issued…

A: Diluted earnings per share refers to a company’s per-share profit based on the number of common…

Q: The following data were compiled prior to preparing the balance sheet of the Conrad Corporation as…

A: Appropriated retained earnings is that portion of retained earnings that is specifically kept aside…

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A: Total Legal capital + Common stock, par + Preferred stock, par Total Shareholders' equity = Common…

Q: In 2018, Lakers Corporation acquired 3,000 shares of its P 20 par value ordinary share capital at…

A: Treasury shares are those shares which are being reacquired or repurchased by the company from its…

Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…

A: Cash dividends are  distribution of accumulated earnings by a companies to its stockholders.…

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A: Authorized capital represents the limit of capital set at the time of incorporation where the…

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A: The stock split leads to change in number of outstanding shares.

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A: Using par value method, the treasury stock is recorded on the basis of par value of shares. share…

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A: Treasury shares are the shares of the own company that are repurchased from the market for resale or…

Q: nary shares with a par value of P10 per share. During the current year, the entity had the following…

A: Solution: Share premium is the amount which is in excess of par value of ordinary shares. It also…

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A: Share Dividend - Share Dividend is the shares issued by the company to its already existing…

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A: Shareholders' equity on the balance sheet is affected by the on the k issue, preference stock…

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Q: The following is the Stockholders' Equity section of the balance for Spencer Corporation as of…

A: No. of shares issued under stock dividend = No. of shares issued and outstanding x stock dividend…

Q: The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting…

A: The share premium is the excess amount received from issuance of shares as compared to par value of…

Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…

A: Formula: Share capital = Number of shares issued x Issue price per share.

Q: Ivy Corp declared a share capital dividend entitling its shareholders to one additional share for…

A: >Share Capital dividend or Stock dividend is the dividend given to stockholders in form of new…

Q: IFA Corporations had Net Income of $780,000 and the following information for January 2021  to…

A: Ordinary Share- Ordinary shares, also called general shares, are stocks sold on a community swap.…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.