On July 1, 2020, Tomas Company's board of directors declared a 10% share dividend. The market price of Tomas' 500,000 outstanding ordinary shares, P50 par value, was P100 per share on the date of declaration. The share dividend was distributed on September 1, 2020 when the market price of the shares was P120 per share. What amount should be charged to the Accumulated Profits and Losses account as a result of the share dividend? A. P 2, 500, 000 b. P 5, 000, 000 c. P 6, 000, 000 d. P 3, 500, 000 e. answer not given
On July 1, 2020, Tomas Company's board of directors declared a 10% share dividend. The market price of Tomas' 500,000 outstanding ordinary shares, P50 par value, was P100 per share on the date of declaration. The share dividend was distributed on September 1, 2020 when the market price of the shares was P120 per share. What amount should be charged to the Accumulated Profits and Losses account as a result of the share dividend? A. P 2, 500, 000 b. P 5, 000, 000 c. P 6, 000, 000 d. P 3, 500, 000 e. answer not given
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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22. On July 1, 2020, Tomas Company's board of directors declared a 10% share dividend. The market price of Tomas' 500,000 outstanding ordinary shares, P50 par value, was P100 per share on the date of declaration. The share dividend was distributed on September 1, 2020 when the market price of the shares was P120 per share. What amount should be charged to the
A. P 2, 500, 000
b. P 5, 000, 000
c. P 6, 000, 000
d. P 3, 500, 000
e. answer not given
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