Tan Med-Care Inc. is a health insurance corporation. The following account balances appear on the statement of financial position of E. Tan Med-Care Inc.: Ordinary Shares (50,000 shares authorized), P10 par, P400,000; Share Premium-Ordinary, P42,500; and Retained Earnings, P299,500. The board of directors declared a 4% share dividend when the market price of the stock was P15 a share. What is the total share capital after the dividend was declared? What is the total retained earnings before the dividend was declared? What is the total share capital before the dividend was declared?
Tan Med-Care Inc. is a health insurance corporation. The following account balances appear on the statement of financial position of E. Tan Med-Care Inc.: Ordinary Shares (50,000 shares authorized), P10 par, P400,000; Share Premium-Ordinary, P42,500; and Retained Earnings, P299,500. The board of directors declared a 4% share dividend when the market price of the stock was P15 a share. What is the total share capital after the dividend was declared? What is the total retained earnings before the dividend was declared? What is the total share capital before the dividend was declared?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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Tan Med-Care Inc. is a health insurance corporation. The following account balances appear on the
- What is the total share capital after the dividend was declared?
- What is the total retained earnings before the dividend was declared?
- What is the total share capital before the dividend was declared?
- What is the total shareholders’ equity before the dividend was declared?
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