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:

Processing Times

The amount of time required to complete a specific step or operation in the manufacturing or service delivery process.

Jobs Processed

The number of tasks or work items completed in a given period.

Cumulative Deviation

The sum of differences between observed and expected values, often used in quality control and process monitoring.

Planned Outputs

The expected results or outcomes that are intended to be achieved from a project or initiative.