Cash received in lieu of share dividends On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The shares represent 10% of the shares outstanding of TIYAGA Corporation. On the same date, TIYAGA declared 20% share dividends payable to stockholders on October 31. On October 31, the stock is selling at P12 per share. However, on October 31, TIYAGA Corporation gave P13 per share cash in lieu of the supposed share dividends previously declared a. How much is the dividend income to be recognized in 2021? b. Prepare all the necessary entries during the year.
Cash received in lieu of share dividends On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The shares represent 10% of the shares outstanding of TIYAGA Corporation. On the same date, TIYAGA declared 20% share dividends payable to stockholders on October 31. On October 31, the stock is selling at P12 per share. However, on October 31, TIYAGA Corporation gave P13 per share cash in lieu of the supposed share dividends previously declared a. How much is the dividend income to be recognized in 2021? b. Prepare all the necessary entries during the year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
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Cash received in lieu of share dividends
On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The
shares represent 10% of the shares outstanding of TIYAGA Corporation. On the same date, TIYAGA
declared 20% share dividends payable to stockholders on October 31. On October 31, the stock is selling
at P12 per share. However, on October 31, TIYAGA Corporation gave P13 per share cash in lieu of the
supposed share dividends previously declared
a. How much is the dividend income to be recognized in 2021?
b. Prepare all the necessary entries during the year.
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