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Savona Bhd has outstanding 3,000,000 ordinary shares. The balanced in its contributed share capital and retained earnings accounts at 1 January 2019 were RM60,000,000 and RM24,000,000, respectively. In 2019, the company’s net income was RM4,700,000. A cash dividend of RM0.60 per share was declared on 5 May 2019 and was paid on 30 June 2019. A 6% share dividend was declared on 30 November 2019, and distributed to shareholders of record on 31 December 2019. The market price of the shares has been as follows: 31 October 2019       RM31 30 November 2019   RM34 31 December 2019   RM38 REQUIRED: (a) Prepare the journal entries to record the declaration and payment of the cash dividend and the share dividend. (b) Prepare the Statement of Changes in Equity for the year ended 31 December 2019.

Savona Bhd has outstanding 3,000,000 ordinary shares. The balanced in its contributed share capital and retained earnings accounts at 1 January 2019 were RM60,000,000 and RM24,000,000, respectively. In 2019, the company’s net income was RM4,700,000. A cash dividend of RM0.60 per share was declared on 5 May 2019 and was paid on 30 June 2019. A 6% share dividend was declared on 30 November 2019, and distributed to shareholders of record on 31 December 2019. The market price of the shares has been as follows: 31 October 2019       RM31 30 November 2019   RM34 31 December 2019   RM38 REQUIRED: (a) Prepare the journal entries to record the declaration and payment of the cash dividend and the share dividend. (b) Prepare the Statement of Changes in Equity for the year ended 31 December 2019.

Intermediate Accounting: Reporting And Analysis
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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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Savona Bhd has outstanding 3,000,000 ordinary shares. The balanced in its contributed share capital and retained earnings accounts at 1 January 2019 were RM60,000,000 and RM24,000,000, respectively. In 2019, the company’s net income was RM4,700,000. A cash dividend of RM0.60 per share was declared on 5 May 2019 and was paid on 30 June 2019. A 6% share dividend was declared on 30 November 2019, and distributed to shareholders of record on 31 December 2019. The market price of the shares has been as follows:


31 October 2019       RM31
30 November 2019   RM34
31 December 2019   RM38


REQUIRED:
(a) Prepare the journal entries to record the declaration and payment of the cash dividend and the share dividend.
(b) Prepare the Statement of Changes in Equity for the year ended 31 December 2019.

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