Question: The following data were taken from the statement of financial

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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