Lea Company has P420,000 shares of P10 par value common stock outstanding. During the year Lea declared a 5% stock dividend when the market price of the stock was P36 per share. Three months later Lea declared a P.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by A. P252.000 B. P1.020.600 C. P756.000 D. P264,600
Lea Company has P420,000 shares of P10 par value common stock outstanding. During the year Lea declared a 5% stock dividend when the market price of the stock was P36 per share. Three months later Lea declared a P.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by A. P252.000 B. P1.020.600 C. P756.000 D. P264,600
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 24E
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Lea Company has P420,000 shares of P10 par value common stock outstanding. During the year Lea declared a 5%
stock dividend when the market price of the stock was P36 per share. Three months later Lea declared a P.60 per
share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by
A. P252.000
B. P1.020.600
C. P756.000
D. P264,600
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