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Q.5) Fasting Limited has 170,000 shares of Rs20 par value capital stock outstanding on January 1, 2020. The following equity related transactions occurred during the
Q.5) Fasting Limited has 170,000 shares of Rs20 par value capital stock outstanding on January 1, 2020. The following equity related transactions occurred during the current year 2020: (5 Marks) OMarch 31: Declared a cash dividend of Rs 8 per share. O April 30: Paid the above cash dividend declared on March 31 to stock holders. June 30: Declared the 5% stock dividend. The market price of stock on the date of declaration was Rs 25 per share. 0 August 31: Issued the above stock dividend declared on June 30. 0 September 30: Due to increased market price company split the shares in to 2:1. Instructions: i). Pass the journal entries in general journal form to record the above transactions. ii). Difference between stock split & stock dividend. iii) Calculate the number of shares outstanding at December 31st 2020
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