Activity #3 Ruiz Med-care Inc, is a health insurance company. The following account balances appear on the statement of financial position of Ruiz Med-care Inc.: Ordinary Shares (50,000 shares authorized), P10 par, P400,000; Share Premium ordinary, P42,500; and Retained Earnings, P299,500. The board of directors declared a 4% share dividend when the market price of the stock was P15 as share. Required: 1. Journalize the entries to record a. The declaration of the dividend b. The issuance of the shares 2. Determine the fllowing amounts before the share dividend was declared: a. Total share capital b. Total retained earnings c. Total shareholders' equity 3. Determine the following amounts after the share dividend was declared: a. Total share capital b. Total retained earnings c. Total shareholders' equity
Activity #3 Ruiz Med-care Inc, is a health insurance company. The following account balances appear on the statement of financial position of Ruiz Med-care Inc.: Ordinary Shares (50,000 shares authorized), P10 par, P400,000; Share Premium ordinary, P42,500; and Retained Earnings, P299,500. The board of directors declared a 4% share dividend when the market price of the stock was P15 as share. Required: 1. Journalize the entries to record a. The declaration of the dividend b. The issuance of the shares 2. Determine the fllowing amounts before the share dividend was declared: a. Total share capital b. Total retained earnings c. Total shareholders' equity 3. Determine the following amounts after the share dividend was declared: a. Total share capital b. Total retained earnings c. Total shareholders' equity
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.13MCP
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