Debit to ordinary share dividends


On January 1, Swanson Corporation had 60,000 ordinary shares with a €10 par value outstanding. On March 17, the company declared a 15% share dividend to shareholders of record on March 20. Market value of the shares was €13 on March 17. The entry to record the transaction of March 17 would include a

credit to Cash Dividends for €27,000.

debit to Ordinary Share Dividends Distributable for €90,000.

credit to Cash for €117,000.

credit to Ordinary Share Dividends Distributable for €90,000.

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Accounting Basics: Debit to ordinary share dividends
Reference No:- TGS0801916

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