13. On May 1, 2019, Chavez Corp. declared and issued a 10% ordinary share dividend. Prior to this dividend, Chavez had 100,000 shares of P1 par value ordinary shares issued and outstanding. The fair market value of Chavez's ordinary shares was P30 per share on May 1, 2019. As a result of the share dividend, Chavez's total shareholders' equity a. increased by P300,000. b. decreased by P300,000. decreased by P10,000. d. did not change. C.
13. On May 1, 2019, Chavez Corp. declared and issued a 10% ordinary share dividend. Prior to this dividend, Chavez had 100,000 shares of P1 par value ordinary shares issued and outstanding. The fair market value of Chavez's ordinary shares was P30 per share on May 1, 2019. As a result of the share dividend, Chavez's total shareholders' equity a. increased by P300,000. b. decreased by P300,000. decreased by P10,000. d. did not change. C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:13. On May 1, 2019, Chavez Corp. declared and issued a 10% ordinary share dividend.
Prior to this dividend, Chavez had 100,000 shares of P1 par value ordinary shares
issued and outstanding. The fair market value of Chavez's ordinary shares was P30
per share on May 1, 2019. As a result of the share dividend, Chavez's total
shareholders' equity
a. increased by P300,000.
b. decreased by P300,000.
decreased by P10,000.
C.
d. did not change.
Transcribed Image Text:15. The following information was abstracted from the accounts of David Corporation at
year-end:
Total income since incorporation
Total cash dividends paid
P840,000
260,000
Proceeds from sale of donated shares
90,000
60,000
Total value of share dividends distributed
Excess of proceeds over cost of treasury stock sold
140,000
What should be the current balance of retained earnings?
P520,000
b. P580,000
P610,000
d. P670,000
а.
С.
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