Al Furat Corporation's Shareholders' equity section at December 31, 2013 appears below:Shareholders' equityOrdinary shares, $10 par, 60,000 outstanding$600,000Share premium ordinary 150,000Total$750,000Retained earnings 150,000Total shareholders' equity$900,0001- On June 30, 2014, the board of directors of Al Furat Corporation declared a 20% Share dividend, payable on July 31, 2014, to shareholders of record on July 15, 2014. The fair value of Al Furat Corporation's Share on June 30, 2014, was $15.2- On December 1, 2014, the board of directors Al Furat Corporation declared a 30% Share dividend, payable on January 31, 2015, to shareholders of record on December 31, 2014. The fair value of Al Furat Corporation's Share on December1 , 2014, was $17.InstructionsPrepare the journal entries on the appropriate dates to record the share dividend.
Al Furat Corporation's Shareholders' equity section at December 31, 2013 appears below:
Shareholders' equity
Ordinary shares, $10 par, 60,000 outstanding$600,000
Share premium ordinary 150,000
Total$750,000
Total shareholders' equity$900,000
1- On June 30, 2014, the board of directors of Al Furat Corporation declared a 20% Share dividend, payable on July 31, 2014, to shareholders of record on July 15, 2014. The fair value of Al Furat Corporation's Share on June 30, 2014, was $15.
2- On December 1, 2014, the board of directors Al Furat Corporation declared a 30% Share dividend, payable on January 31, 2015, to shareholders of record on December 31, 2014. The fair value of Al Furat Corporation's Share on December1 , 2014, was $17.
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