SHARE DIVIDENDS

Assume the following data:

Ordinary Shares, P100par value, 50,000 shares issued P 5,000,000

Share Premium 200,000

Retained Earnings 2,000, 000

Market value- declaration date 150

Market value- distribution date 170

Required: For each of the following assumptions, prepare entries on the date of declaration and date of payment:

1. A 20% share dividends is declared on Ordinary Shares.

(1) DATE OF DECLARATION

(2) DATE OF PAYMENT

2. A 10% share dividends is declared on Ordinary Shares.

(1) DATE OF DECLARATION

(2) DATE OF PAYMENT