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Basa Aec104 HW

This document contains the answers to several homework problems involving journal entries for various types of dividends, including: 1) Cash dividends declared on December 31 and paid on February 15. 2) Property dividends declared on December 31 and distributed on January 31. 3) Scrip dividends declared on December 31, issued and paid on January 31 and March 31. 4) Stock dividends of 10% and 30% declared on January 31.

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Mikha Ella Basa
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42 views

Basa Aec104 HW

This document contains the answers to several homework problems involving journal entries for various types of dividends, including: 1) Cash dividends declared on December 31 and paid on February 15. 2) Property dividends declared on December 31 and distributed on January 31. 3) Scrip dividends declared on December 31, issued and paid on January 31 and March 31. 4) Stock dividends of 10% and 30% declared on January 31.

Uploaded by

Mikha Ella Basa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NAME: BASA, MIKHA ELLA G.

AEC 104 F.A.R


HOMEWORK

9.1 REQUIRED. Journal entry to record the declaration and payment of cash payments.

ANSWER:

a. DATE OF DECLARATION.

Date Debit Credit

DEC. 31, Retained Earnings (20% x 17,500 x 70,000


200C 20)

Cash Dividends Payable 70,000

b. DATE OF PAYMENT

Date Debit Credit

FEB. 15, Cash Dividends Payable 70,000


200D

Cash 70,000

9.2 REQUIRED. Journal entries to record the declaration and distribution of property dividends.

ANSWER:

a. DATE OF DECLARATION

Date Debit Credit

DEC. 31, Retained Earnings (3,000) 3,000


200B

Property Dividends Payable 3,000


b. DATE OF DISTRIBUTION

Date Debit Credit

JAN 31, Property Dividends Payable 3,000


200C

Merchandise 3,000

9.3 REQUIRED. Journal entries required to record the above dividend declaration, issuance and
payment.

ANSWER:

a. DATE OF DECLARATION

Date Debit Credit

DEC 31, Retained Earnings (25 x 10,000) 250,000


200D

Scrip Dividends payable 250,000

b. DATE OF ISSUANCE AND PAYMENT

Date Debit Credit

JAN 31, Scrip Dividends Payable 250,000


200E

Notes Payable to Shareholders 250,000

Date Debit Credit

MAR. 31, Notes Payable to Shareholders 250,000


200E

Interest Expense (18% x 250,000 33,750

Cash 283,750
9.4 REQUIRED. Journal Entries to record the declaration and distribution of stock dividends
assuming:

ANSWER:

a. THE COMPANY DECLARED 10% STOCK DIVIDEND.

Date Debit Credit

JAN 31, Retained Earnings (10% x 70,000 x 336,000


200B 48)

Stock Dividends Distributable (10% 280,000


x 70,000 x 40)

Share Capital from Stock Dividends 56,000


(10% x 70,000 x 8)

Date Debit Credit

APR 30, Stock Dividends Distributable 280,000


200B

Ordinary Share Capital 280,000

b. THE COMPANY DECLARED 30% STOCK DIVIDEND.

Date Debit Credit

JAN 31, Retained Earnings (30% x 70,000 x 1,008,000


200B 48)

Stock Dividends Distributable (30% 840,000


x 70,000 x 40)

Share Capital from Stock Dividends 168,000


(30% x 70,000 x 8)

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