Please answer no 2-4

2. Why must a company have sufficient retained earnings before it may declare cash dividends? 3. January 1, PT Chevrol had 95.000 no par ordinary shares issued and outstanding. The shares have stated value of Rp5.000/share. Below are transactions during the year: April 1 issued 25.000 additional ordinary shares for Rp17.000/share June 30 Declared a cash dividend of Rp1.000 per share to shareholders of record on June 30 July 8 Paid the Rp1.000 dividends Dec 1 issued 2.000 additional ordinary shares for Rp19.000/share 15 Declared a cash dividend on outstanding shares of Rp1.200/share to shareholdes of record on Dec 31. 1. Prepare the journal entries to record the transactions 2. How are dividends and dividends payable reported in the financial statements prepared at December 31? You may simplify the answer in thousand" 4. On August 31, a company has share capital Rp500.000.000 retained earnings Rp900.000.000. The company is considering two courses of actions: 1) Declaring 5% share dividend on 50.000 shares Rp10.000 per share outstanding, or 2) Stock split 2 for 1, that will reduce the par value to Rp5.000 per share. Current market price of the share is Rp14.000. Prepare a tabular summary of the effect of the alternatives of the 2 actions on the component of: - Equity - Outstanding shares - Par value per share, With this component: before action, after share dividends, and after share split