On January 1, 2017, Lanie Limited had 1,000,000 of ordinary shares outstanding that were issued at par.

Question:

On January 1, 2017, Lanie Limited had £1,000,000 of ordinary shares outstanding that were issued at par. It also had retained earnings of £750,000. The company issued 40,000 ordinary shares at par on July 1 and earned net income of £400,000 for the year.
Instructions
Journalize the declaration of a 15% share on December 10, 2017, for the following independent assumptions.
(a) is £8, and market price is £18.
(b) is £5, and market price is £20.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...