1. On July 1, 2021, Battery Company’s board of directors declared a 10% share dividend. The market price of Batter’s 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2021, when the market price of the share was P100 per share. What amount should be charged to the Retained Earnings account as a result of the share dividend?Group of answer choices-0-2,000,0003,200,0004,000,000

A stock dividend is a dividend paid to shareholders in the form of additional shares in the company.…

Answered: On July 1, 2021, Battery Company’s…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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- On July 1, 2021, Battery Company’s board of directors declared a 10% share dividend. The market price of Batter’s 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2021, when the market price of the share was P100 per share.
What amount should be charged to the Retained Earnings account as a result of the share dividend?

Group of answer choices

-0-

2,000,000

3,200,000

4,000,000

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