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Question - On December 1, 2017, the board of directors of silver corporation declared a P5 per ordinary share cash dividend to stockholder's of record on December 15, 2017 payable on December 31, 2017.
Silver corporation has 20,000 ordinary shares issued. It reacquired 2,000 of these ordinary shares in the market and held them in the treasury.
Required:
A. Determine the number of ordinary shares outstanding.
B. Prepare journal entries on the date of declaration and on the date of payment.
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