Q 3: (Entries for Share Dividends and Share Splits) The equity accounts of Lawrence Group have

the following balances on December 31, 2019.

Share CapitalOrdinary, 10 par, 200,000 shares issued and outstanding 2,000,000

Share PremiumOrdinary 1,200,000

Retained Earnings 5,600,000

Shares of Lawrence Group are currently selling at 37.

Required:

Prepare the appropriate journal entries for each of the following cases.

1. A share dividend of 5% is declared and issued.
2. A share dividend of 100% is declared and issued.
3. A 2-for-1 share split is declared and issued.