Question one

The equity accounts of Sam Group have the following balances on December 31, 2011. Share Capital-Ordinary, $10 par, 500,000 shares issued and outstanding $5,000,000 Share Premium-Ordinary 3,500,000 Retained Earnings 8,600,000 Shares of Sam Group are currently selling at $50. Instructions Prepare the appropriate journal entries for each of the following cases. No. Transaction 1 A declaration of cash dividends for $0.2 per share Journal Entry 2 The payment of cash dividends declared above Journal Entry 3 A share dividend of 5% is declared and issued, Journal Entry 4 A share dividend of 100% is declared and issued Journal Entry 5 A 2-for-1 share split declared and issued Journal Entry