The equity accounts of Lawrence Group have the following balances on December 31, 2019. Share Capital-Ordinary, 10

Question:

The equity accounts of Lawrence Group have the following balances on December 31, 2019.
Share Capital-Ordinary, €10 par, 200,000 shares issued and outstanding...........€2,000,000
Share Premium-Ordinary.....................................................................1,200,000
Retained Earnings..............................................................................5,600,000
Shares of Lawrence Group are currently selling at €37.
Instructions
Prepare the appropriate journal entries for each of the following cases.
a. A share of 5% is declared and issued.
b. A share of 100% is declared and issued.
c. A 2-for-1 share split is declared and issued.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...