Question: Just Me Co. (JMC) declares a 3-for-2 share split when the fair value of the shares is P45 per share considering that they has an

Just Me Co. (JMC) declares a 3-for-2 share split when the fair value of the shares is P45 per share considering that they has an outstanding 20,000 shares of P25 par value ordinary shares and retained earnings of P750,000 before the declaration. the entry includes: Select one: a. Debit to Retained Earnings for P400,000. b. No entry in the books is required for a share split but only a memorandum entry to keep track of the transaction. c. A debit to cash for P900,000. d. A credit to Share PremiumOrdinary for P100,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

answer fast please i dont have time Rayan Co. has outstanding 20,000 shares of 10 par value ordinary shares and retained earnings of 500,000. If Kenan declares a 2-for 1 share split when the fair...

Question 1 (a) Helen Ong (Helen) runs a hairdressing business from her home and the business has expanded, with revenue now reaching RM40,000 per year. Helen is considering moving her business to a...

1.ONG Co. purchased a patent on January 1, 2018 for P300,000. The patent was being amortized over its remaining legal life of 15 years. During 2020, ABC Co. determined that the economic benefits of...

please help Stock split versus stock dividend Firm Mammoth Corporation is considering a 3-for-2 stock alt currently has the stockholders' equity position shown. The current stock price is $120 per...

3. Which of the following statements is correct about retained earnings? a. Rich Corporation reported Retained Earnings P1,000,000 credit balance. The board declared 10% of 200,000 P10 par value...

Hi Ma'am/Sir! Can someone help me to answer this mutiple questions? I need solution and explanation on every question. Thank you! PROBLEM 6: MULTIPLE CHOICE - COMPUTATIONAL 1. Cyan Corp. issued...

THE FF QS AND EXPLAIN THE ANSWER: 1. Which of the following statements is correct about retained earnings? a. XYZ Corporation reported Retained Earnings P1,200,000 credit balance means the entity has...

Instructions: Do not use peso sign Do not use comma Do not use decimal point Round off your final answer to the nearest whole number ( Unless there is a specific instruction attached to the problem...

mULTIPLE cHOICE. PRovide Solution Chapter Book Value per Share, and Earnings per Share 383 MC 9-6 The shareholders' equity section of GGG Corp. as of December 31, 2014 contained the following...

You should lease rather than buy whes the DI NAL from leasing is poaitive. IRR bei leaing exceeds the afeux oest of borrowing. m) Which ene of these is considered to be the best reason for obtaising...

produce a flowchart to document the following system,which relates to the despatch of printed exercise books to customers

x 50 2. Solve 2x + 4x x-8 x+6 algebraically. Include an interval chart in your solution. (6 marks)

0 2 5 final exam 1 3 of 2 0 This test: 1 0 0 point ( s ) possible This question: 5 point ( s ) possible Submit Which of the following statements is FALSE? A . A financial option contract gives the...

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...