Savona Bhd has outstanding 3,000,000 ordinary shares. The balanced in its contributed share capital and retained earnings accounts at 1 January 2019 were RM60,000,000 and RM24,000,000, respectively. In 2019, the company’s net income was RM4,700,000. A cash dividend of RM0.60 per share was declared on 5 May 2019 and was paid on 30 June 2019. A 6% share dividend was declared on 30 November 2019, and distributed to shareholders of record on 31 December 2019. The market price of the shares has been as follows: 31 October 2019 RM31 30 November 2019 RM34 31 December 2019 RM38 REQUIRED: (a) Prepare the journal entries to record the declaration and payment of the cash dividend and the share dividend. (b) Prepare the Statement of Changes in Equity for the year ended 31 December 2019.
Savona Bhd has outstanding 3,000,000 ordinary shares. The balanced in its contributed share capital and
31 October 2019 RM31
30 November 2019 RM34
31 December 2019 RM38
REQUIRED:
(a) Prepare the
(b) Prepare the Statement of Changes in Equity for the year ended 31 December 2019.
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