ABC Corporation provided you the following information on January 01, 2021: Share capital, P10 par                                                       P4,000,000 Share premium                                                                        800,000 Retained earnings                                                                3,500,000 Share transactions for the year 2021: Feb 10 – Declared 10% share dividend. Market value of each share – P20 March 10 – Issued and distributed share dividends declared on February 10 June 15 - Declared 20% share dividend. Market value of each share – P25 July 01 - Issued and distributed share dividends declared on June 15 December 03 – Declared cash dividend of P2 per share Journal entry on March 10 would include credit to: a. Retained Earnings – 400,000 b. Share premium – 400,000 c. Share capital – 800,000 d. Share dividend payable – 800,000

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.