Question - On January 1, 2017, Marin Limited had £1,073,000 of ordinary shares outstanding that were issued at par. It also had retained earnings of £743,400. The company issued 38,400 ordinary shares at par on July 1 and earned net income of £400,800 for the year.
Journalize the declaration of a 15% share dividend on December 10, 2017, for the following independent assumptions.
(a) Par value is £8, and market price is £19.
(b) Par value is £5, and market price is £21.