Question
On April 8, 2014, Cordillera Corp. declared and issued a 25% ordinary share capital dividend. Prior to this date, Cordillera had 20,000 shares of P2
On April 8, 2014, Cordillera Corp. declared and issued a 25% ordinary share capital dividend. Prior to this date, Cordillera had 20,000 shares of P2 value ordinary share that were both issued and outstanding The carrying value of each share of stock is P20 at the time of declaration of the dividend.
As a result of the share capital dividend, how much will be debited to Retained Earnings?
a. P100,000 b. P40,000 c. P75,000 d. P10,000
What is the effect of the share capital dividend on total shareholders' equity?
a. Decreased by P10,000 b. Increased by P100,000 c. Decreased by P40,000 d. Did not change
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ACC 120 Wake Tech Financial Accounting W Connect Plus Access
Authors: J. David Spiceland
1st Edition
1308168926, 978-1308168920
