Question
Share Capital a)List three important dates with respect to dividends ( 3 marks). b) DEF Corporation has the following share capital and retained earnings balances
Share Capital
a)List three important dates with respect to dividends ( 3 marks).
b) DEF Corporation has the following share capital and retained earnings balances at December 31, 2018.
Issued share capital
2,000,000 common shares $ 10,000,000
Retained earnings 90,000,000
$ 100,000,000
Answer the following three independent questions using the above information:
i)If a 5% stock dividend is issued when the shares are trading for $ 10 per share, prepare the journal entry to record the stock dividend.
ii)If a 2 for 1 stock split is announced, prepare the journal entry to record the stock split.
iii)If DEF Corporation had net income of $3,000,000 in 2018 and 1,000,000 common shares outstanding at December 31,2017. Calculate the earnings per share.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started