Question

The following data were taken from the statement of financial position accounts of Murless Corporation on December 31, 2010.
Current Assets .................................................. R540,000
Investments ...................................................... 624,000
Share Capital—Ordinary (par value R10)........ 600,000
\Share Premium—Ordinary.............................. 150,000
Retained Earnings............................................ 840,000

Instructions
Prepare the required journal entries for the following unrelated items.
(a) A 5% share dividend is declared and distributed at a time when the market price of the shares is R39 per share.
(b) The par value of the ordinary shares is reduced to R2 with a 5-for-1 share split.
(c) A dividend is declared January 5, 2011, and paid January 25, 2011, in bonds held as an investment. The bonds have a book value of R90,000 and a fair value of R125,000.



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  • CreatedJune 17, 2013
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