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hello friends,

QUE

What is the effect on retained earnings when a non-monetary asset is distributed to a shareholder?

R/e will increase or decrease and by what amount ?

1)also check J/E given below , If corect or not .???

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Property Dividend JOURNAL ENTRIES

date of dividend declaration

Dr nonmonetary asset diff ( f.v. – c.v.)

cr Gain on appreciation of nonmonetary asset( fv- cv )

Dr R/E f.v. of asset .

Cr Dividends payable fv of asset

On the dividend payment date,:

Debit Dividends payable f.v. of asset

cr nonmonetary asset f.v.

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