Reference no: EM132695642

Questions -

Q1. How much will a shareholder receive in dividends if they own 5000 shares, the dividend is 20c per share, the shares were issued for $6 each, and the current market value of the shares is $6.25 each?

1) $1 200

2) $1 250

3) $nil

4) $1 00

Q2. Minstrel Ltd decided to issue 200 000 ordinary shares for $1.00 each. Applications were received for 220 000 shares. The shares were allotted by the directors at a meeting held a week after the close of applications. After refunding applications for 20 000 shares, which of the following is the correct journal entry to transfer the application money to the share capital account?

1) DR Application $220 000; CR Cash trust account $220 000

2) DR Application $220 000; CR Share capital $220 000

3) DR Application $200 000; CR Share capital $200 000

4) DR Cash trust account $200 000; CR Share capital account $200 000

Q3. At 30 June 2019, the board of directors of Stargaze Ltd declared a final dividend of 10c per share on 60 000 ordinary shares. The dividend was paid in August 2019. The correct general journal entry to record the payment of the dividend is:

1) DR Bank $6000; CR Final dividend payable $6000

2) DR Retained earnings $6000; CR Final dividend payable $6000

3) DR Retained earnings $6000; CR Bank $6000

4) DR Final dividend payable $6000; CR Bank $6000