Reference no: EM132628597
Fed Ltd has the following authorised share capital:
Authorised:900 000 Ordinary shares
500 000 12% Preference shares
The issued share capital at 31 December 2019 is as follows:
400 000 Ordinary shares at RI ,00 each, and
200 000 12% Preference shares at R2, 00 each
Of the issued share capital, the following shares were issued on 30 June 2019 and have been correctly recorded:
100 000 Ordinary shares at RI each, and
50 000 12% Preference shares of R2,00 each
On 30 November 2019 directors declared an ordinary dividend of 50 cents per share payable to all shareholders registered on 31 December 2019.
Problem 1: Show general journal entries to record the declaration of dividends on 30 November 2019 and the subsequent payment of dividends on 31 December 2019.
Problem 2: Show dates on which the journal entries will be recorded. Include a brief narration.