Problem #10 Share Dividends and Share Splits On Jan. 1, 2019, the records of Matuguinas Corporation showed the following balances: Ordinary Shares, P1 par Share Premium-Ordinary Retained Earnings P 80,000 920,000 760,000 On Jan. 15, 2019, the board of directors declared a 3% share dividend; the stock's market price was P50 per share, On Nov. 4, 2019, the board of directors declared a for-1 share split; the stock's market price was P90 per share. Required: 1. How many shares of stock were outstanding on Jan. 1, Mar. 31, and Dec. 31 2016 assuming no other events related to shareholders' equity occurred? 2. What effect did the share dividends have on total shareholders' equity? 3. Prepare the entries for these two events. 4. Why would a corporation declare a share split? 5. What would the second entry have been if the corporation had declared a 100% share dividend instead of a 2-for-1 share split?
Problem #10 Share Dividends and Share Splits On Jan. 1, 2019, the records of Matuguinas Corporation showed the following balances: Ordinary Shares, P1 par Share Premium-Ordinary Retained Earnings P 80,000 920,000 760,000 On Jan. 15, 2019, the board of directors declared a 3% share dividend; the stock's market price was P50 per share, On Nov. 4, 2019, the board of directors declared a for-1 share split; the stock's market price was P90 per share. Required: 1. How many shares of stock were outstanding on Jan. 1, Mar. 31, and Dec. 31 2016 assuming no other events related to shareholders' equity occurred? 2. What effect did the share dividends have on total shareholders' equity? 3. Prepare the entries for these two events. 4. Why would a corporation declare a share split? 5. What would the second entry have been if the corporation had declared a 100% share dividend instead of a 2-for-1 share split?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 85PSA: Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and...
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Hello please answer number 2,4 and 5. Thanks.
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