PART BOn 1 July 2020, ABT Ltd had the following two equity accounts on its Balance sheet:Share Capital (6,000,000 shares) $30,000,000Retained Earnings $17,000,000The following events and transactions relate to ABT Ltd for the financial year ending 30 June 2021.31/12/2020ABT Ltd has been operating successfully and the current market price is $12 per share. On 31 December 2020, the company declared a 5% share dividend and $12 was the value assigned to the shares.The share dividend was distributed in January 2021.20/01/2021Issued the shares for the share dividend.30/06/2021For the financial year ending 30 June 2021, ABT Ltd recorded a profit after income tax of $15,000,000. On 30 June 2021, $2,000,000 was transferred from Retained Earnings to General Reserve to provide for future business expansion.30/06/2021Declared a final cash dividend of 30 cents per share.REQUIRED:Prepare the general journal entries relating to the share dividend on 31/12/2020 and 20/01/2021. [Narrations are not required].Prepare the Equity section of the Balance Sheet of ABT Ltd as at 30 June 2021

Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Answered: PART B On 1 July 2020, ABT Ltd had the…

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

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PART B

On 1 July 2020, ABT Ltd had the following two equity accounts on its Balance sheet:

Share Capital (6,000,000 shares) $30,000,000

Retained Earnings $17,000,000

The following events and transactions relate to ABT Ltd for the financial year ending 30 June 2021.

31/12/2020	ABT Ltd has been operating successfully and the current market price is $12 per share. On 31 December 2020, the company declared a 5% share dividend and $12 was the value assigned to the shares. The share dividend was distributed in January 2021.
20/01/2021	Issued the shares for the share dividend.
30/06/2021	For the financial year ending 30 June 2021, ABT Ltd recorded a profit after income tax of $15,000,000. On 30 June 2021, $2,000,000 was transferred from Retained Earnings to General Reserve to provide for future business expansion.
30/06/2021	Declared a final cash dividend of 30 cents per share.

REQUIRED:

Prepare the general journal entries relating to the share dividend on 31/12/2020 and 20/01/2021. [Narrations are not required].
Prepare the Equity section of the Balance Sheet of ABT Ltd as at 30 June 2021

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