Shetland Ltd declares and pays a share dividend of 8 000 $2 shares. What is the effect on total equity in the company balance sheet?

The partnership agreement between Allen and Barry states that profit and loss sharing arrangements will be based on the ratio of the partner's capital balances. Allen and Barry have capital balances of $90 000 and $60 000 respectively at the end of the accounting perioD. If profit for the period is $48 000, calculate the profit allocations of each of the partners.

Answer rating: 100% (QA)

For the first question when a company declares and pays a share dividend the effect on the total equ... View the full answer