At 31 December 2019 Trapezium Ltd has the following components of Equity:
On 31 December 2019, the directors of the company declared a 10% share dividend to be paid out of the balance in the Retained earnings account on 5 January 2020.
Required:
(a) Prepare journal entries to record these share transactions.
(b) Calculate the balance of the Retained earnings after these share transactions have taken place.

Question

At 31 December 2019 Trapezium Ltd has the following components of Equity:
  On 31 December 2019, the directors of the company declared a 10% share dividend to be paid out of the balance in the Retained earnings account on 5 January 2020.
Required:
(a) Prepare journal entries to record these share transactions.
(b) Calculate the balance of the Retained earnings after these share transactions have taken place.

Quizplus · Accepted Answer

The Answer of At 31 December 2019 Trapezium Ltd has the following components of Equity:
  On 31 December 2019, the directors of the company declared a 10% share dividend to be paid out of the balance in the Retained earnings account on 5 January 2020.
Required:
(a) Prepare journal entries to record these share transactions.
(b) Calculate the balance of the Retained earnings after these share transactions have taken place.

At 31 December 2019 Trapezium Ltd Has the Following Components