The following information was lifted from the shareholders' equity section of Neeoma Corporation's statement of financial position: Share capital - P10 par value, 280,000 issued shares Subscribed share capital Subscription receivable Share premium Retained earnings Treasury share (at cost, P6/share) P 2,800,000 940,000 530,000 1,025,000 1,700,000 240,000 On June 9, 2020, the board of directors has declared a P3 per share cash dividend to all shareholders of record on June 25, 2020 and payable on July 6, 2020. Required: On the date of declaration, indicate the direction and amount of the effect of the above dividend declaration on the following accounts: 1. Cash dividend payable 2. Retained earnings
The following information was lifted from the shareholders' equity section of Neeoma Corporation's statement of financial position: Share capital - P10 par value, 280,000 issued shares Subscribed share capital Subscription receivable Share premium Retained earnings Treasury share (at cost, P6/share) P 2,800,000 940,000 530,000 1,025,000 1,700,000 240,000 On June 9, 2020, the board of directors has declared a P3 per share cash dividend to all shareholders of record on June 25, 2020 and payable on July 6, 2020. Required: On the date of declaration, indicate the direction and amount of the effect of the above dividend declaration on the following accounts: 1. Cash dividend payable 2. Retained earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information was lifted from the shareholders' equity section of Neeoma
Corporation's statement of financial position:
Share capital - P10 par value, 280,000 issued shares
Subscribed share capital
Subscription receivable
Share premium
Retained earnings
Treasury share (at cost, P6/share)
P 2,800,000
940,000
530,000
1,025,000
1,700,000
240,000
On June 9, 2020, the board of directors has declared a P3 per share cash dividend to all
shareholders of record on June 25, 2020 and payable on July 6, 2020.
Required:
On the date of declaration, indicate the direction and amount of the effect of the above
dividend declaration on the following accounts:
1. Cash dividend payable
2. Retained earnings
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