VENICE COMPANY reports the following information at the end of 2019:

• Authorized Share Capital: 900,000 Ordinary Shares, $4 Par Value;
• Issued Share Capital: 300,000 Ordinary Shares issued at $40 per share;
• Retained Earnings: $6,500,000
• The following transactions take place during 2020:

June 1: VENICE Company declared a Cash Dividend (total) of $1,900,000 payable on June 10. Of this amount, $1,400,000 is a return of Capital.

July 1: VENICE Company declares a Property Dividend of Land valued at $6,400,000. The carrying amount of the Land is $2,800,000 on July 1.

August 1: VENICE Company declares a 20% Share Dividend.

All dividends are distributed on September 30, 2020.

The transaction of June 1 will require which entry with respect to Share Premium - Ordinary?

Select one:

a. DEBIT $500,000

b. DEBIT $1,400,000

c. CREDIT $1,400,000

d. None of these answers

e. CREDIT $500,000

The transaction of July 1 will require which entry with respect to Land?

Select one:

a. CREDIT $3,600,000

b. DEBIT $1,200,000

c. CREDIT $1,200,000

d. DEBIT $3,600,000

e. None of these answers

The transaction of August 1 will require which entry with respect to ORDINARY SHARE DIVIDEND DISTRIBUTABLE?

Select one:

a. CREDIT $12,000,000

b. CREDIT $2,400,000

c. DEBIT $2,400,000

d. None of these answers

e. DEBIT $12,000,000

The transaction of August 1 will require which entry with respect to Retained Earnings?

Select one:

a. DEBIT 12,000,000

b. None of these answers

c. CREDIT 12,000,000

d. CREDIT 2,400,000

e. DEBIT 2,400,000

How many Ordinary Shares will the Company have (i) Authorized; and (ii) Issued; after all Dividends are distributed?

Select one:

a. (i) 300,000 (ii) 420,000

b. None of these answers

c. (i) 900,000 (ii) 600,000

d. (i) 300,000 (ii) 360,000

e. (i) 900,000 (ii) 360,000