The owners’ equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) - RM30,000 Capital Surplus - RM285,000 Retained earnings - RM648,100 Total shareholder’s equity - RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners’ equity account for Rantuil Utilities Berhad.

The owners’ equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) - RM30,000 Capital Surplus - RM285,000 Retained earnings - RM648,100 Total shareholder’s equity - RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners’ equity account for Rantuil Utilities Berhad.

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 owners’ equity account for Rantuil Utilities Berhad are shown below:

Common Share (RM2 par) - RM30,000
Capital Surplus - RM285,000
Retained earnings - RM648,100
Total shareholder’s equity - RM963,100

If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared,
i. Determine the number of new shares that will be distributed.
ii. Reconstruct new owners’ equity account for Rantuil Utilities Berhad.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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