Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On September 20, 2021, Clayton declared a property dividend of 1 share of Dayton for every 5 shares of Clayton stock held by a stockholder. On that date, there were 50,000 ordinary shares of Clayton outstanding, and the market value of Dayton shares was P30 per share. The entry to record the declaration of the property dividend would include a debit to Retained Earnings of
Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On September 20, 2021, Clayton declared a property dividend of 1 share of Dayton for every 5 shares of Clayton stock held by a stockholder. On that date, there were 50,000 ordinary shares of Clayton outstanding, and the market value of Dayton shares was P30 per share. The entry to record the declaration of the property dividend would include a debit to Retained Earnings of
Chapter1: Financial Statements And Business Decisions
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Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On September 20, 2021, Clayton declared a property dividend of 1 share of Dayton for every 5 shares of Clayton stock held by a stockholder. On that date, there were 50,000 ordinary shares of Clayton outstanding, and the market value of Dayton shares was P30 per share. The entry to record the declaration of the property dividend would include a debit to
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