Bond Company had the following amounts in equity before issuing its annual dividend. Ordinary share (35000 shares) $ 390000 Retained earnings $ 440000 Bond has decided to issue a 5 per cent share dividend simultaneously with a $1 per share cash dividend. The date of declaration is 12 November, and the payment date is 29 November. Prepare all journal entries necessary to record the declaration and payment of dividends. Assume that the share was trading for $10 on the date of declaration and $12 on the date of payment. Also, assume the cash dividends were not paid on the additional shares from the share dividend. PLEASE SHOW ALL STEPS AND WORKING OUT
Bond Company had the following amounts in equity before issuing its annual dividend. Ordinary share (35000 shares) $ 390000 Retained earnings $ 440000 Bond has decided to issue a 5 per cent share dividend simultaneously with a $1 per share cash dividend. The date of declaration is 12 November, and the payment date is 29 November. Prepare all journal entries necessary to record the declaration and payment of dividends. Assume that the share was trading for $10 on the date of declaration and $12 on the date of payment. Also, assume the cash dividends were not paid on the additional shares from the share dividend. PLEASE SHOW ALL STEPS AND WORKING OUT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hh6.
Transcribed Image Text:Bond Company had the following amounts in equity before issuing its annual dividend.
Ordinary share (35000 shares)
$ 390000
Retained earnings
$ 440000
Bond has decided to issue a 5 per cent share dividend simultaneously with a $1 per share cash dividend. The date of
declaration is 12 November, and the payment date is 29 November.
Prepare all journal entries necessary to record the declaration and payment of dividends. Assume that the share was
trading for $10 on the date of declaration and $12 on the date of payment. Also, assume the cash dividends were not paid
on the additional shares from the share dividend.
PLEASE SHOW ALL STEPS AND WORKING OUT
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