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need the answer of the 3 part Facifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared
need the answer of the 3 part
Facifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared a 15% common share dividend on June 30, 2020, distributable on July 15, 2020. Because performance during 2020 was better than expected, the company's board of directors declared a $0.40 per share cash dividend on November 15, 2020, payable on December 1, 2020, to shareholders of record on November 30, 2020. The equity section of Pacifica's December 31, 2019, balance sheet showed: Common shares, unlimited shares authorized, 650,000 shares issued and outstanding Retained earnings $6,240,000 2,400,000 Required: 1. Journalize the declaration of the share dividend. The market prices of the shares were $16.00 on June 30, 2020, and $17.60 on Jul 15, 2020. Assume share dividends account is used when dividends are declared. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 June 30, 2020 Share dividends 1,560,000 Common share dividends distributable 1,560,000 es Pont erences 2. Journalize the declaration of the cash dividend. Assume share dividends account is used when dividends are declared. View transaction list View journal entry worksheet Debit No Credit General Journal Date 299,000 1 November 15, 2020 Cash dividends Common shares dividends payable 299,000 3. Prepare the equity section of the balance sheet at December 31, 2020, assuming profit earned during the year was $2,356,800. PACIFICA PAPERS INC. Equity Section of Balance Sheet December 31, 2020 Contributed capital $ 0 Total equityStep by Step Solution
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