The capital accounts of Gripit Company as of yearend 2021 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20. 1. How much is the net effect of a 10% share dividend to the company's reserves? 2. How much is the net effect of a 30% share dividend to the company's total shareholders' equity? 3. How much is the net effect of a 4-for-1 share split to the company's legal capital?
The capital accounts of Gripit Company as of yearend 2021 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20. 1. How much is the net effect of a 10% share dividend to the company's reserves? 2. How much is the net effect of a 30% share dividend to the company's total shareholders' equity? 3. How much is the net effect of a 4-for-1 share split to the company's legal capital?
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 1MC: Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter...
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The capital accounts of Gripit Company as of yearend 2021 are as follows:
Ordinary Share Capital (P10 par) - 500,000
Share Premium - 250,000
Retained Earnings - 3,135,000
The company's ordinary shares are currently selling at P20.
1. How much is the net effect of a 10% share dividend to the company's reserves?
2. How much is the net effect of a 30% share dividend to the company's total shareholders' equity?
3. How much is the net effect of a 4-for-1 share split to the company's legal capital?
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