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On the 15 March X6 Company X decides to make effective the following profit distribution corresponding to the X5 profit which was 860,000. Compensation for

On the 15 March X6 Company X decides to make effective the following profit distribution corresponding to the X5 profit which was 860,000.

  • Compensation for losses from previous years of 320,000.

  • Legal reserve to comply with the Spanish legal requirement.

  • Statutory reserves of 72,000.

  • Dividend of 0.3 per share that will be made effective (paid) on the 15 April.

  • The rest will be classified as voluntary reserves.

    The equity of Company X at that date includes: share capital of 1,200,000 (120,000 shares of 10 par value each), legal reserve of 200,000, and a voluntary reserve of 80,000.

    We also know that on the 15 November X5 and due to the promising performance of the company during the year, a dividend was distributed and paid of 0.2 per share.

    Dividend withholding tax is 21%.

    Required:

    Can you record the entry corresponding to the profit distribution on the 15 March and the entry corresponding to the dividend payment on the 15 April? Please urgent

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