The equity of FGH Company at July 31, 2016 is presented below: Share capital—ordinary, par value P20, authorized 400,000 shares; issued and outstanding 160,000 shares P3,200,000 Share premium—ordinary 160,000 Retained earnings 650,000 On August 1, 2016, the board of directors of FGH declared a 15% share dividend on ordinary shares, to be distributed on September 15th. The market price of FGH’s ordinary shares was P35 on August 1, 2016, and P38 on September 15, 2016. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this share dividend?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

15. The equity of FGH Company at July 31, 2016 is presented below: Share capital—ordinary, par value P20, authorized 400,000 shares; issued and outstanding 160,000 shares P3,200,000 Share premium—ordinary 160,000 Retained earnings 650,000 On August 1, 2016, the board of directors of FGH declared a 15% share dividend on ordinary shares, to be distributed on September 15th. The market price of FGH’s ordinary shares was P35 on August 1, 2016, and P38 on September 15, 2016. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this share dividend? 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education