The board of directors of Western Ltd declared a cash dividend of $1.50 per share on 42 000 ordinary shares on 15 July, 2014. Thedividend is to be paid on 15 August, 2014, to shareholders on record on 31 July, 2014.The effects of the journal entry to record the payment of the dividend on 15 August, 2014, are to:O decrease shareholders' equity and decrease liabilities.O decrease liabilities and decrease assets.O increase shareholders' equity and increase liabilities.O increase shareholders' equity and decrease assets.

A dividend declared decreases the value of shareholders' equity and increases the value of…

Answered: The board of directors of Western Ltd…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The board of directors of Westlake Limited declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2023. The dividend is to be paid on 15 August 2023 to shareholders of record on 31 July 2023. The correct entry to be recorded on 15 August 2023 will include a: Select the one correct answer: Odebit $55,000 to Dividends payable. credit $22,000 to Dividends payable. debit $22,000 to Retained earnings. credit $55,000 to Retained earnings.
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Corporations and Dividends Zeus Ltd declared a final dividend to its shareholders at the Annual General Meeting on 31.12.2017 of $1,200,000. The amount was finally paid on 31.3.2018. Required: Prepare the Journal Entries for the declaration and distribution of the dividends in 2017 and 2018.
5. The directors have made the following provisions for the year ended 30 April 2021:(i) A final dividend of RM0.10 per share is to be paid to ordinary shareholders.(ii) Preference dividend to be paid in full.(iii) Transferred RM4,000 to the general reserve account. Question Prepare the statement of profit or loss of Gagah Sdn. Bhd. for the year ended 30 April 2021.
10) On December 23, 2016 the board of directors declared a total dividend of $1,200 on its 550 issued and outstanding shares to shareholders of record on January 16, 2017 and payable on February 16, 2017. (Note that the company uses a dividends general ledger account to record its dividend payments during the year rather than recording the dividends directly to retained earnings. Be sure to use that account!) Date Account description Debit Credit
Ebberle Company reported the following in the shareholders' equity section of its statement of financial position at 30 June 2018. The fully paid shares were previously issued $3.00 on application, $1.00 on allotment and an $0.50 call: Ordinary shares $76 500 Retained earnings $25 000 Total shareholders' equity $101 500 Which of the following is right according to the information above? Earnings per share (EPS) for this company is $2.50 Earnings per share (EPS) for this company is $2.67 The company issued 15 000 shares The company issued 17 000 shares
5. The directors have made the following provisions for the year ended 30 April 2021:(i) A final dividend of RM0.10 per share is to be paid to ordinary shareholders.(ii) Preference dividend to be paid in full.(iii) Transferred RM4,000 to the general reserve account. Question Prepare the statement of changes in equity of Gagah Sdn. Bhd. for the year ended 30 April 2021.
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ABC SAOG has in issue 2,000,000 ordinary shares of OMR 0.500 fully paid. On 31st Dec 2018 management board has decided to pay a dividend of 100 baisa on each ordinary share which was readily approved by the shareholders. The date of payment was 10th March 2019. During the year the company earned a profit after tax of OMR 200,000. The company paid the amount of dividends for the ordinary shareholders for the year 2019. What will be the Net Retained earnings after the payment of dividend to shareholders assuming that the company had opening Retained earnings on 1st January 2018 of OMR 800,000? a. OMR 1,000,000 b. OMR 600,000 c. OMR 800,000 d. OMR 300,000 The amount of ordinary dividend to be distributed to the shareholder is a. OMR 200,000 b. OMR 1,000,000 c. OMR 700,000 d. OMR 400,000
A company was formed on 1 March 2018 with an authorized capital of OMR 5 million divided into common stock of OMR1 each. The company came up with an Initial Public Offer IPO by issuing 2 million equity shares at OMR 1 each. The amount of Share capital account to be shown on the balance sheet at the end of the year 31st December 2018 assuming that IPO is under subscribed by the public was 1,800,000 as on 31st December 2018. a. The IPO should be cancelled as per Oman Commercial Companies Law b. OMR200,000 c. OMR2,000,000 d. OMR1,800,000\\

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