The following data were taken from the statement of financial position accounts of Murless SA on December

Question:

The following data were taken from the statement of financial position accounts of Murless SA on December 31, 2019.
Current Assets..................................................R$540,000
Investments.........................................................624,000
Share Capital-Ordinary R$10)....................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 is declared and distributed at a time when the market price of the shares is R$39 per share.
b. The of the ordinary shares is reduced to R$2 with a 5-for-1 share split.
c. A is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of R$90,000 and a fair value of R$125,000.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...