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On October 1,2020, Red Chili Company declared dividends to its ordinary shareholders distributable in the form of piece of pieces of equipment.These equipment were acquired on October 1,2014 at a total cost of P 450,000 and were depreciated over a ten-year estimated useful life with no estimated scrap value using the straight-line depreciation.The dividends were distributed on January 31,2021.The equipment were estimated to have the following market value: Oct. 1 2020 - 190,000 Dec. 31, 2020 - 160,000 January 31,2021 - 175,000 Give the entries to record the foregoing, including any adjustment at December 31,2020. please provide solution and explanation

On October 1,2020, Red Chili Company declared dividends to its ordinary shareholders distributable in the form of piece of pieces of equipment.These equipment were acquired on October 1,2014 at a total cost of P 450,000 and were depreciated over a ten-year estimated useful life with no estimated scrap value using the straight-line depreciation.The dividends were distributed on January 31,2021.The equipment were estimated to have the following market value: Oct. 1 2020 - 190,000 Dec. 31, 2020 - 160,000 January 31,2021 - 175,000 Give the entries to record the foregoing, including any adjustment at December 31,2020. please provide solution and explanation

FINANCIAL ACCOUNTING
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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On October 1,2020, Red Chili Company declared dividends to its ordinary shareholders distributable in the form of piece of pieces of equipment.These equipment were acquired on October 1,2014 at a total cost of P 450,000 and were depreciated over a ten-year estimated useful life with no estimated scrap value using the straight-line depreciation.The dividends were distributed on January 31,2021.The equipment were estimated to have the following market value:

Oct. 1 2020 - 190,000
Dec. 31, 2020 - 160,000
January 31,2021 - 175,000

Give the entries to record the foregoing, including any adjustment at December 31,2020.

please provide solution and explanation

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