SOAL LATIHAN DIVIDEND

Disusun Oleh Kelompok 1 :

Marlina (11210820000026)
Nadia Salsabila Anjani (11210820000029)
Permata Andini (11210820000031)
Suci Monalia Putri (11210820000034)
Muhammad Farhan Arfan (11210820000077)
Muhammad Zacky (11210820000080)
Putri Triana Sari (11210820000087)
Nurisna Asriyati (11190820000010)
Mirza Fazariani (11210820000157)
Muhamad Rizky (11210820000159)

Kelas 4C Akuntansi
 1. (LO1) (Recording the Issuances of Ordinary Shares) During its first year of operations, Sitwell
SE had the following transactions pertaining to its ordinary shares.

Jan 10 Issued 80,000 shares for cash at €6 per share.

Mar. 01 Issued 5,000 shares to attorneys in payment of a bill for €35,000 for services rendered
in helping the company to incorporate.
July. 01 Issued 30,000 shares for cash at €8 per share.
Sept. 01 Issued 60,000 shares for cash at €10 per share.

Instructions:

a. Prepare the journal entries for these transactions, assuming that the ordinary shares have a par
value of €3 per share.

b. Briefly discuss how the entries in part E15.1a. will change if the shares are no-par with a stated
value of €2 per share.

Solutions:

Jan. 10 Cash (80.000 X $5) ………………………………………………………….. 400.000

Share Capital-Ordinary (80.000 X $2) ………………… 160.000

Share Premium-Ordinary (80.000 X $3) ……………. 240.000

Mar.01 Cash (5.000 X $108) ………………………………………………………….. 80.000

Share Capital-Preference (5.000 X $50) ………………….. 48.000

Share Premium-Preference (5.000 X $58) ………………. 32.000

April.01 Land ………………………………………………………….…………………. 80.000

Share Capital-Ordinary (24.000 X $2)…………………….…. 48.000

Share Premium-Ordinary (80.000 - $48.000)……………. 32.000

May.01 Cash (80.000 X $7) …………………………………………………………. 560.000

Share Capital-Ordinary (80.000 X $2) ………………………. 160.000

Share Premium-Ordinary (80.000 X $5) …………………. 400.000

Agus.01 Organization Expense ……………………………………………………… 50.000

Share Capital-Ordinary (10.000 X $2) …………………….. 20.000

Share Premium-Ordinary (50.000 - $20.000) …………. 30.000

Sept.01 Cash (10.000 X $9) ………………………………………………………. 90.000

Share Capital-Ordinary (10.000 X $2) ……………….….. 20.000

Share Premium-Ordinary (10.000 X $7) ………………….... 70.000

Nov.01 Cash (1.000 X $112) ………………………………………………………. 112.000

Share Capital-Preference (1.000 X $50) ……………… 50.000

Share Premium-Preference (1.000 X $62) ……….….. 62.000

(a) Land ($60 x 25.000) …………………………………………………………… 1.500.000

Treasury Sharaes ($48 x 25.000) ………………………… 1.200.000

Share Premium-Treasury ……………………………………. 300.000

2. (LO1, 2) (Share Issuances and Repurchase) Loxley Corporation is authorized to issue 50,000
shares of $10 par value ordinary shares. During 2019, Loxley took part in the following selected
transactions.

1. Issued 5,000 shares at $45 per share, less costs related to the issuance of the shares totaling
$7,000.

2. Issued 1,000 shares for land appraised at $50,000. The shares were actively traded on a national
securities exchange at approximately $46 per share on the date of issuance.

3. Purchased 500 treasury shares at $44 per share. The treasury shares purchased were issued in
2018 at $40 per share.

Instructions:

a. Prepare the journal entry to record item 1.

b. Prepare the journal entry to record item 2.

c. Prepare the journal entry to record item 3 using the cost method.

Solutions:

(a) Cash [(1.000 X $45) - $7.000] ………………………………………..…… 218.000

Share Capital-Ordinary (5.000 X $10) …………………….. 50.000
Share Premium-Ordinary………………………………..………. 168.000
(b) Land (1.000 x $4) . ………………………………………..………………….. 46.000
Share Capital-Ordinary (1.000 X $10) ..………………..….. 10.000
Share Premium-Ordinary ($46.000 - $10.000) ……….. 36.000
(c) Treasury Shares (500 X $44) . ………………………………………..…. 22.000
Cash ………………………………………..…………………………… 22.000

3. (LO3) (Cash Dividend and Liquidating Dividend) Addison Corporation has 10 million shares
of ordinary shares issued and outstanding. On June 1, the board of directors voted a 60 cents
per share cash dividend to shareholders of record as of June 14, payable June 30.

Instructions:

a. Prepare the journal entry for each of the dates above, assuming the dividend represents a
distribution of earnings.

b. How would the entry differ if the dividend were a liquidating dividend?

Solutions:
 (a) 6/1 Retained Earnings ………………………………….…………… 6.000.000
Dividends Payable ……………………………………….. 6.000.000
No entry
(b) Dividends Payable ………………………………………………………… 6.000.000
Cash ………………………………………………………… 6.000.000

4. (LO3) (Dividend Entries) The following data were taken from the statement of financial
position accounts of Murless SA on December 31, 2019.

Current Assets R$540.000

Investment 624.000
Share Capital-Ordinary (Par value R$10) 600.000
Share premium-Ordinary 150.000
Retained Warnings 840.000

Instructions:

Prepare the required journal entries for the following unrelated items.

a. A 5% share dividend is declared and distributed at a time when the market price of the shares is
R$39 per share.

b. The par value of the ordinary shares is reduced to R$2 with a 5-for-1 share split.

c. A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment.
The bonds have a book value of R$90,000 and a fair value of R$125,000.

Solutions:

(a) Retained Earnings ………………………………………………………… 30.000

Ordinary Share Dividend Distributable ……………….. 30.000
(60.000 shares X 5% X R$10 = R$30.000)
Ordinary Share Dividend Distributable ……………………….. 30.000
Share Capital—Ordinary …………………………………… 30.000
(b) No entry: momerandum to indicate that par value is reduced to R$2 and shares outstanding
are now 300.000 (60.000 x 5)
(c) January 5, 2020
Debt Investmenr (R$125.000 - $90.000) ……………………. 35.000
Unrealized Holding Gain or Loss—Income ……….. 35.000
Retained Earnings ……………………………………………………… 125.000
Property Dividends Payable ……………………………… 125.000
January 25, 2020
Property Dividends Payable …………………………………….. 125.000
Debt Investments ………………………………………….. 125.000

5. (LO4) (Trading on the Equity Analysis) Presented below is information from the annual
report of DeVries Plastics.
 Operating income € 532,150
Bond interest expense 135,000
Income before income tax 397,150
Income tax 183,432
Net income € 213,718
Bonds payable €1,500,000
Share capital—ordinary 875,000
Retained earnings 575,000

Instructions:

a. Compute the return on ordinary share equity and the rate of interest paid on bonds. (Assume
balances for debt and equity accounts approximate averages for the year.)

b. Is DeVries Plastics trading on the equity successfully? Explain.

Solutions:

(a) Rate of return on ordinary share equity:

$ 213.718 $ 213.718
= = 14,7%
$ 875.000+ $ 575.000 $ 1.450 .000
$ 135.000
Rate of interest paid on bonds payable= = 9%
$ 1.500 .000
(b) DeVries Plastics trading on the equity successfully, since its return on ordinary shares equity
than interest paid on bonds

6. Green Day Corporation has outsatnding 400.000 shares of $10 par value ordinary
shares. The corporation declares a 5% share dividend when the fair value is $65 per
share. Prepare the journal entries for Green Day Corporation for both the date of
declaration and the date of distribution
Answer:
Declaration Date
Retained Earnings ($65 x (5% x400.000)) $1.300.000
Ordinary Share Dividend Distributable ((5% x 400.000) x $65)) $200.000
Share Premium - Ordinary $1.100.000
`
Distribution Date
Ordinary Share Dividend Distributable ((5% x 400.000) x $65)) $200.000
Share Capiital - Ordinary $200.000

7. The equity accounts of Lawrence Group have the following balances on December
31,
2019.
Shae Capital-Ordinary, $10 par, 200.000 shares issued and outstanding $2.000.000
Share Premium 1.200.000
Retained Earning 5.600.000
Shares of Lawrence Group are currently selling at $37
 Instruction:
Prepare the approprirate journal entries for each the following cases
a. A share dividend of 5% is declared and issued
b. A share dividend of 100% is declared and issued
c. A 2-for-1 share split is declared and issued
Solutions:

1.

Declaration Date
Retained Earnings ($47 x (5% x200.000)) $470.000
Ordinary Share Dividend Distributable ((5% x 400.000) x $65)) $100.000
Share Premium - Ordinary $370.000
`
Distribution Date
Ordinary Share Dividend Distributable ((5% x 400.000) x $65)) $100.000
Share Capiital - Ordinary $100.000

2.
Declaration Date
Retained Earnings (200.000 x $10) $2.000.000
Ordinary Share Dividend Distributable $2.000.000
`
Distribution Date
Ordinary Share Dividend Distributable (200.000 x
$10) $2.000.000
Share Capiital - Ordinary $2.000.000

c. No entry, the par value becomes €5 and the number of shares outstanding
increases to 400,000.

8. Zhang Mining Company declared, on April 20, a dividend of $500.000.000 payable

on
June 1.
Of this amount, $125.000.000 is a return of capital. Prepare the April 20 and June 1
entries for Zhang.
Solution:
Apr. 20 Retained Earnings……………………………………
($500.000.000 - $125.000.000………………. 375.000.000
Share Premium-Ordinary………………….…… 125.000.000
Dividends Payable………………
500.000.000
June 1 Dividends Payable………………………………. 500.000.000
Cash…………………………… 500.000.000
9. On December 1, 2020,
the directors of Media
General declare a €0.50 per
share cash
10. dividend on 100,000
shares of €10 par value
ordinary shares. The
dividend is payable on
January
11. 20 to shareholders of
record on December 22.
12. Dec. 1 Cash Dividend
50.000
13. Dividend payable
50.000
14. Dec. 22 No Entry
15. Jan. 20 Dividend payable
50.000
16. Cash 50.000
17. On December 1, 2020,
the directors of Media
General declare a €0.50 per
share cash
18. dividend on 100,000
shares of €10 par value
ordinary shares. The
dividend is payable on
January
19. 20 to shareholders of
record on December 22.
20. Dec. 1 Cash Dividend
50.000
 21. Dividend payable
50.000
22. Dec. 22 No Entry
23. Jan. 20 Dividend payable
50.000
24. Cash 50.000
On December 1, 2020, the
9.

directors of Media General

declare a €0.50 per share cash
dividend on 100,000 shares of
€10 par value ordinary shares.
The dividend is payable on
January
20 to shareholders of record on
December 22.
Dec. 1 Cash Dividend 50.000
 Dividend payable 50.000
Dec. 22 No Entry
Jan. 20 Dividend payable
50.000
Cash 50.000
9. On December 1, 2020, the directors of Media General declare a $0,50 per share cash dividend on
100.000 shares of $10 par value ordinary shares. The dividend is payable on January 20 to
shareholders of record on December 22.

Solutions:

Dec.1 Cash Dividend ……………………………………………. 50.000

Dividend Payable ………………………….. 50.000

Dec.22 No entry

Dec 31 Dividend Payable ……………………………………… 50.000

Cash ……………………………………………. 50.000

10. Moonwalker Corporation issued 2.000 shares of its $10 par value ordinary shares for
$60.000. Moonwalker also incurred $1.500 of costs associated with issuing the shares.
Prepare Moonwalker’s journal entry to record the issuance of the company’s shares.
Solutions:

Cash ($60.000 - $1.500) $58.500

Share Capital-Ordinary ($10 x 2.000) $20.000
Share Premium - Ordinary $38.500