On November 1,2019, ABC Company’s board of directors declared property dividends distributable on February 28,2020 in the form of pieces of machines with carrying value of P 575,000 and with a fair value of P 600,000. On December 31,2019, the fair value of the machines dropped to P 580,000 and on February 28,2020 increased to P 610,000. The entry on February 28,2020 would include a debit to property dividends payable of P 580,000 debit to Asset held for distribution of P 575,000 credit to gain on disposal of asset of P 5,000 credit to gain on disposal of asset of P 35,000
On November 1,2019, ABC Company’s board of directors declared property dividends distributable on February 28,2020 in the form of pieces of machines with carrying value of P 575,000 and with a fair value of P 600,000. On December 31,2019, the fair value of the machines dropped to P 580,000 and on February 28,2020 increased to P 610,000. The entry on February 28,2020 would include a debit to property dividends payable of P 580,000 debit to Asset held for distribution of P 575,000 credit to gain on disposal of asset of P 5,000 credit to gain on disposal of asset of P 35,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On November 1,2019, ABC Company’s board of directors declared property dividends distributable on February 28,2020 in the form of pieces of machines with carrying value of P 575,000 and with a fair value of P 600,000. On December 31,2019, the fair value of the machines dropped to P 580,000 and on February 28,2020 increased to P 610,000.
The entry on February 28,2020 would include a
debit to property dividends payable of P 580,000
debit to Asset held for distribution of P 575,000
credit to gain on disposal of asset of P 5,000
credit to gain on disposal of asset of P 35,000
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