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Shannon Manufacturing Declared a 10% Share Dividend When It Had

Question 218

Multiple Choice

Shannon Manufacturing declared a 10% share dividend when it had 300,000 ordinary shares with a $3 par value outstanding. The market price per share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to


A) Retained Earnings for $90,000.
B) Share Premium-Ordinary for $270,000.
C) Share Capital-Ordinary for $360,000.
D) Ordinary Share Dividends Distributable for $360,000.

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