The following data were taken from the statement of financial position accounts of Murless SA on December 31, 2022.

Current Assets ....................................................................... R$540,000
Investments ................................................................................ 624,000
Share Capital—Ordinary (par value 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 dividend is declared and distributed at a time when the market price of the shares is R$39 per share.

b. The par value of the ordinary shares is reduced to R$2 with a 5-for-1 share split.

c. A dividend is declared January 5, 2023, and paid January 25, 2023, in bonds held as held for collection investment. The bonds have a cost of R$90,000 and a fair value of R$125,000.