Myers Company provides you with the following condensed statement of financial position information. Instructions For each transaction
Question:
Instructions
For each transaction below, indicate the euro impact (if any) on the following five items:
(1) Total assets,
(2) Share capitalordinary
(3) Share premiumordinary
(4) Retained earnings
(5) Equity. (Each situation is independent.)
(a) Myers declares and pays a ¬1 per share cash dividend.
(b) Myers declares and issues a 10% share dividend when the market price is ¬14 per share.
(c) Myers declares and issues a 30% share dividend when the market price is ¬15 per share.
(d) Myers declares and distributes a property dividend. Myers gives one ABC share for every two shares held of Myers Company. ABC is selling for ¬10 per share on the date the property dividend is declared.
(e) Myers declares a 2-for-1 share split and issues newshares.
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...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield