Problem #9 Entries for Share Dividends E Tan Med-Care Inc. is a health insurance corporation. The following account balances appear on the statement of financial position of E. Tan Med-Care Inc.: Ordinary Shares (50,000 shares authorized), P10 par, P400,000; Share Premium-Ordinary, P42,500, and Retained Earnings, P299,500. The board of directors declared a 4% share dividend when the market price of the stock was P15 a share. Required: 1. Journalize the entries to record a. the declaration of the dividend. b. the issuance of the shares. 2. Determine the following amounts before the share dividend was declared: a. total share capital b. total retained earnings c. total shareholders' equity 3. Determine the following amounts after the share dividend was declared: a. total share capital b. total retained earnings c. total shareholders' equity
Problem #9
Entries for Share Dividends
E Tan Med-Care Inc. is a health insurance corporation. The following account balances appear on the
Required:
1.
a. the declaration of the dividend. b. the issuance of the shares.
2. Determine the following amounts before the share dividend was declared:
a. total share capital b. total retained earnings
c. total shareholders' equity
3. Determine the following amounts after the share dividend was declared:
a. total share capital
b. total retained earnings
c. total shareholders' equity
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