Morgan Solutions Pte Ltd starts with 200,000 shares at $2 each and Retained Earnings of $200,500. This simulation shows the critical difference between declaring and paying dividends, and how share issues affect dividend calculations.
Statement of Financial Position
Assets
Current Assets
Cash at Bank
$50,000
Current Liabilities
No current liabilities
$0
Equity
Share Capital ( shares @ $2.00)
Retained Earnings
$200,500
Total Equity
$600,500
Transaction Process
Journal Entries
Journal entries will appear here as transactions occur...