On January 5, 2020, Swat Company declared a 15% share dividend. The market price of the entity’s 430,000 outstanding shares of P10 par value was P14 per share on that date. The share dividend was distributed on March 25 when the market price was P16 per share. What amount should be credited to share premium for the share dividend?

On January 5, 2020, Swat Company declared a 15% share dividend. The market price of the entity’s 430,000 outstanding shares of P10 par value was P14 per share on that date. The share dividend was distributed on March 25 when the market price was P16 per share. What amount should be credited to share premium for the share dividend?

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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Question

On January 5, 2020, Swat Company declared a 15% share dividend. The
market price of the entity’s 430,000 outstanding shares of P10 par value
was P14 per share on that date. The share dividend was distributed on
March 25 when the market price was P16 per share. What amount should
be credited to share premium for the share dividend?

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