3. Using the data in No. 2 but with additional information that the available cash of the corporation is only P300,000. Comment on the declaration made by the Board in the above first two cases.
3. Using the data in No. 2 but with additional information that the available cash of the corporation is only P300,000. Comment on the declaration made by the Board in the above first two cases.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Using the data in No. 2 but with additional information that the available cash of the corporation is only P300,000. Comment on the declaration made by the Board in the above first two cases.
(see attached images for the data in no. 2. Sorry I forgot to put it awhile ago, please asnwer it. thank you so much!) :))
Transcribed Image Text:S as of
Direction From the following independent cases, journalize the dividend declaration
2. The records of Alamo Corporation showed the following data:
Ordinary Share Capital, par P100, authorized
200,000 shares, issued 50,000 shares
Share Premium
Retained Earnings
P5,000,000
230,000
2,300,000
and the dividend payment:
a) The Board of Directors declared a 10% cash dividend.
b) The Board of Directors declared a P5 cash dividend.
c) The Board of Directors declared a merchandise dividend of P15
d) The Board declared a property dividend of 2 SMB shares for one Alamo share sMP
shares are selling at P15 but were acquired by Alamo Corporation @ P10. Use PAS
39. SMC shares are considered available for sale securities.
e) The Board declared a 22% stock dividend. Stocks are selling at P105 per share.
f) The Board declared a 12% stock dividend. Market value of stock is P120.
per
share.
Transcribed Image Text:3. Using the data in No. 2 but with additional information that the available cash of the
corporation is only P300,000. Comment on the declaration made by the Board in the
above first two cases.
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