On July 1, 2022, BFAR Corp. declared and issued 25% share dividend to its ordinary shareholders. Before the issuance of the said shares, the company had 28,000 shares of P13 par value ordinary shares that were both issued and outstanding. The fair market value of each share is P20. How much was credited to the Ordinary Share Capital upon issuance of the share dividend?

On July 1, 2022, BFAR Corp. declared and issued 25% share dividend to its ordinary shareholders. Before the issuance of the said shares, the company had 28,000 shares of P13 par value ordinary shares that were both issued and outstanding. The fair market value of each share is P20. How much was credited to the Ordinary Share Capital upon issuance of the share 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 3RE

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