Property Dividends

Journal Entry on Declaration Date

mustration: Isen, Ltd. transterred to shareholders some ot its investments in securities with a carrying value of HK$1,250,000 by declaring a property dividend on December 28, 2021, to be distributed on January 30, 2022, to shareholders of record on January 15, 2022. At the date of declaration the securities have a fair value of HR$2,000,000. Ten makes the following entries.

At date of declaration (December 28, 2021)

Equity Investments 750,000

Unrealized Holding Gain or Loss - Income 750,000

Retained Earnings 2,000,000

Property Dividends Payable 2,000,000