Reference no: EM132542997
Question - The following data were taken from the statement of financial position accounts of Cha-Cha Corporation on Dec 31, 2019.
Current Assets $ 270,000
Investments $ 312,000 Share
Capital - Ordinary (par Value $10) $300,000
Share Premium - Ordinary $75,000
Retained Earnings $420,000
Prepare the required Journal Entries for the following unrelated items!
1. A 5% share dividend is declared and distributed at a time when the market price of the shares is $39 per share.
2. The par value of the ordinary shares is reduced to $2 with a 5-for-1 share split.
3. A dividend is declared January 10, 2020 and paid January 28, 2020, in bonds held as an investment. The bonds have a book value of $ 0f $45,000 and a fair value $ 62,500.