Shannon Manufacturing Declared a 10% Share Dividend When It Had

question 185

Multiple Choice

Shannon Manufacturing declared a 10% share dividend when it had 300,000 ordinary shares with a $3 par value outstanding. The market price per share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to

• A) Retained Earnings for $90,000.
• B) Share Premium-Ordinary for $270,000.
• C) Share Capital-Ordinary for $360,000.
• D) Ordinary Share Dividends Distributable for $360,000.

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Definitions:

Geographic Market Segments

The division of a market into smaller homogeneous groups based on their geographical boundaries or locations.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, such as crops, minerals, or water.

Target Market Segments

Specific groups of potential customers identified by companies as the most likely to purchase their products or services.

Reposition

The strategy of changing the market position of a product or brand, often to target new demographics or market segments.