Jomel Corporation has 10,000 shares of Ordinary share capital authorized, P 30 par of which 6,000 shares are outstanding. The corporation authorized a share capital dividend when the market value was P 80 per share, entitling its shareholder to one additional share for each share held. What is the total amount charged to Retained Earnings account as a result of this share capital dividend?

Jomel Corporation has 10,000 shares of Ordinary share capital authorized, P 30 par of which 6,000 shares are outstanding. The corporation authorized a share capital dividend when the market value was P 80 per share, entitling its shareholder to one additional share for each share held. What is the total amount charged to Retained Earnings account as a result of this share capital dividend?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...

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