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  3. q.5) fasting limited has 170,000 shares of rs20 pa

Q.5) Fasting Limited has 170,000 shares of Rs20 par value capital stock outstanding on January...

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Q.5) Fasting Limited has 170,000 shares of Rs20 par value capital stock outstanding on January 1, 2020. The following equity related transactions occurred during the current year 2020: (5 Marks) OMarch 31: Declared a cash dividend of Rs 8 per share. O April 30: Paid the above cash dividend declared on March 31 to stock holders. June 30: Declared the 5% stock dividend. The market price of stock on the date of declaration was Rs 25 per share. 0 August 31: Issued the above stock dividend declared on June 30. 0 September 30: Due to increased market price company split the shares in to 2:1. Instructions: i). Pass the journal entries in general journal form to record the above transactions. ii). Difference between stock split & stock dividend. iii) Calculate the number of shares outstanding at December 31st 2020

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