Question
Hybe Corporation is authorized to issue 20,000 shares of P 20 par value ordinary share capital. As of May 15, 2019, it has 5,000 shares
Hybe Corporation is authorized to issue 20,000 shares of P 20 par value ordinary share capital. As of May 15, 2019, it has 5,000 shares of ordinary shares issued and outstanding. It has paid-in capital in excess of par of P 25,000 and retained earnings of P 105,400. The Board of Directors declared a 10% share capital dividend on May 15, 2019. Assuming the shares of Banner Corp. are traded in the stock market. What will be the journal entry to record the declaration of a 10% share capital dividend when the trading price of the stock was P 28 per share?
A. Dr. Retained Earnings P 14,000; Cr. Share Capital Dividends Distributable P 10,000 Cr. Paid in Capital from Share Capital Dividends P 4,000
B. Dr. Retained Earnings P 100,000; Cr. Share Capital Dividends Distributable P 100,000
C. Dr. Retained Earnings P 140,000; Cr. Share Capital Dividends Distributable P 100,000 Cr. Paid in Capital from Share Capital Dividends P 40,000
D. Dr. Retained Earnings P 14,000; Cr. Share Capital Dividends Distributable P 10,000 Cr. Paid in Capital in Excess of Par P 4,000
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