1. On July 1, 2021, Battery Company’s board of directors declared a 10% share dividend. The market price of Batter’s 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2021, when the market price of the share was P100 per share. What amount should be charged to the Retained Earnings account as a result of the share dividend?Group of answer choices-0-2,000,0003,200,0004,000,000

A stock dividend is a dividend paid to shareholders in the form of additional shares in the company.…

Answered: On July 1, 2021, Battery Company’s…

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...

See similar textbooks

Related questions

Concept explainers

Question

- On July 1, 2021, Battery Company’s board of directors declared a 10% share dividend. The market price of Batter’s 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2021, when the market price of the share was P100 per share.
What amount should be charged to the Retained Earnings account as a result of the share dividend?

Group of answer choices

-0-

2,000,000

3,200,000

4,000,000

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions