A Company owns
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Company owns 2,400 ordinary shares of B Corporation
acquired at P100 per share. The shares represent less than 5%
ownership in B Corporation.
а.
Received cash dividend of P7.50 per share.
Received a bonus issue of one ordinary share for every
four shares held.
b.
Received a preference share dividend of one share for
every four ordinary shares held. Ordinary share is selling
ex-dividend at P125 while preference share is selling at
Р250.
с.
d.
Ordinary shares are exchanged in a 4-for-1 split.
Received a property dividend of one ordinary share of C
for every six shares of B held.
ordinary share is P50 per share.
е.
Market price of C's
REQUIRED:
Prepare entries for each of the foregoing independent transactions.
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