Problem 1 (Cash and Scrip Dividends) Presented below the capital structure of DBM Corporation as of December 31, 2018: Ordinary Share Capital, P 50 par, 100,000 issued and 95,000 outstanding shares 5,000,000 Ordinary Share Premium 1,000,000 Retained Earnings 8,000,000 Treasury Shares 120,000 The Corporation declared the following dividends during 2019: April 1 Declared a cash dividend of P 10 per share of ordinary shares. The corporation issued 6% interest bearing promissory note in relation to cash dividend declared payable on September 30 to shareholders of record of April 20. November 10 Declared a cash dividend of P 6 per share of ordinary shares, payable on December 15 to shareholders of record of November 20. Requirement: Record the transactions occurred during 2019.
Problem 1 (Cash and Scrip Dividends)
Presented below the capital structure of DBM Corporation as of December 31, 2018:
Ordinary Share Capital, P 50 par, 100,000 issued and 95,000 outstanding shares 5,000,000
Ordinary Share Premium 1,000,000
Treasury Shares 120,000
The Corporation declared the following dividends during 2019:
April 1 Declared a cash dividend of P 10 per share of ordinary shares. The corporation issued 6% interest bearing promissory note in relation to cash dividend declared payable on September 30 to shareholders of record of April 20.
November 10 Declared a cash dividend of P 6 per share of ordinary shares, payable on December 15 to shareholders of record of November 20.
Requirement: Record the transactions occurred during 2019.
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