#23 Ryan company declared a 5% share dividend on 100,000 issued and outstanding shares of P20 par value, which had a fair value of P50 per share before the share dividend was declared. This share dividend was distributed 60 days after the declaration date. What is the increase in current liabilities as a result of the share dividend declaration? 0 pls provide correct solution for the given answer

#23 Ryan company declared a 5% share dividend on 100,000 issued and outstanding shares of P20 par value, which had a fair value of P50 per share before the share dividend was declared. This share dividend was distributed 60 days after the declaration date. What is the increase in current liabilities as a result of the share dividend declaration? 0 pls provide correct solution for the given answer

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.5C

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Problem no. 2 Ray Corp. declared a 5% stock dividend on its 10,000 issued and outstanding shares of P2 par value common stock, which had a fair value of P5 per share before the stock dividend was declared. This stock dividend was distributed 60 days after the declaration date. 11. By what amount did Ray's current liabilities increase as a result of the stock dividend declaration? а. 0 b. 500 с. 1,000 d. 2,500
Question 42 At the beginning of the current year, CFAS Company declared a 10% share dividend. The market price of the entity's 300.000 outstanding shares of PS0 par value was P111 per share on that date. The share dividend was distributed on July 1 when the market price was P100 per share. What amount should be credited to share premium for the share dividend?
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#21During the year, Gilbert company issued 4,000 shares with P100 par value in connection with ashare dividend. The market value per share on the date of declaration was P150. Theshareholders’ equity before issuance of the share dividend was as follows:Share capital, P100 par, 20,000 shares outstanding 2,000,000Share premium 3,000,000Retained earnings 1,500,0009What is the retained earnings balance immediately after the share dividend? 1,100,000 pls provide correct solution for the given answer
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