The records of Alamko Corporation showed the following data:Ordinary share capital, parP10, authorised 1,000,000shares, issued 300,0003,000,000Share Premium300,000Treasury shares, 10,000 at(150,000)costRetained Earnings5,000,000The Board of Directors declared a 30% stock dividend. Stocks are selling at P15. The entry to record the dividend declaration isSelect the correct response:Retained earnings1,350,000Stock dividends for distribution900,000Share Premium450,000Retained earnings870,000Stock dividends for distribution870,000Retained earnings1,305,000Stock dividends for distribution870,000Share Premium435,000Retained earnings900,000Stock dividends for distribution900,000

Preparation of Journal entry Notes:- Alamko Corporation has issued 300,000 shares at P15 with P5…

Answered: The Board of Directors declared a 30%…

The Board of Directors declared a 30% stock dividend. Stocks are selling at P15. The entry to record the dividend declaration is

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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Question

The records of Alamko Corporation showed the following data:
Ordinary share capital, par
P10, authorised 1,000,000
shares, issued 300,000
3,000,000
Share Premium
300,000
Treasury shares, 10,000 at
(150,000)
cost
Retained Earnings
5,000,000
The Board of Directors declared a 30% stock dividend. Stocks are selling at P15. The entry to record the dividend declaration is
Select the correct response:
Retained earnings
1,350,000
Stock dividends for distribution
900,000
Share Premium
450,000
Retained earnings
870,000
Stock dividends for distribution
870,000
Retained earnings
1,305,000
Stock dividends for distribution
870,000
Share Premium
435,000
Retained earnings
900,000
Stock dividends for distribution
900,000

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