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ividend declaration

ividend declaration

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The records of Alamko Corporation showed the following data: Ordinary share capital, par P10, authorised 1,000,000 shares, issued 300,000 Que 3,000,000 Share Premium 300,000 Treasury shares, 10,000 at cost (150,000) Retained Earnings 6,000,000 The Board of Directors declared a property dividend of 5 SMDC shares for 5 Alamko shares. SMDC shares are selling at P20 but were acquired by Alamko at P10. The entry to record the dividend declaration is Select the correct response: Retained Earnings 3,000,000 O Property Dividends Payable 3,000,000 Retained Earnings 6,000,000 O Property Dividends Payable 6,000,000 Retained Earnings 5,800,000 O Property Dividends Payable 5,800,000 Retained Earnings 2,900,000 O Property Dividends Payable 2,900,000
Transcribed Image Text:The records of Alamko Corporation showed the following data: Ordinary share capital, par P10, authorised 1,000,000 shares, issued 300,000 Que 3,000,000 Share Premium 300,000 Treasury shares, 10,000 at cost (150,000) Retained Earnings 6,000,000 The Board of Directors declared a property dividend of 5 SMDC shares for 5 Alamko shares. SMDC shares are selling at P20 but were acquired by Alamko at P10. The entry to record the dividend declaration is Select the correct response: Retained Earnings 3,000,000 O Property Dividends Payable 3,000,000 Retained Earnings 6,000,000 O Property Dividends Payable 6,000,000 Retained Earnings 5,800,000 O Property Dividends Payable 5,800,000 Retained Earnings 2,900,000 O Property Dividends Payable 2,900,000
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