Dividends

Problem 1 (Cash and Scrip Dividends)

Presented below the capital structure of DBM Corporation as of December 31, 2018:

Ordinary Share Capital, P 50 par, 100,000 issued and 5,000 outstanding shares 5,000,000

Ordinary Share Premium 1,000,000

Retained Earnings 8,000,000

Treasury Shares 120,000

The Corporation declared the following dividends during 2019:

April 1 Declared a cash dividend of P 10 per share of ordinary shares. The corporation issued 6% interest bearing promissory note in relation to cash dividend declared payable on September 30 to shareholders of record of April 20.

November 10 Declared a cash dividend of P 6 per share of ordinary shares, payable on December 15 to shareholders of record of November 20.

Requirement: Record the transactions occurred during 2019.