1. Loola Company’s outstanding share capital at December 31, 2020 consisted of 45,000 shares of 5% cumulative Preference Share, P10 par, fully participating as to dividends. No dividends       were in arrears 300,000 Ordinary Share, P1 par. On December 31, 2020, Loola declared dividends of P150,000. What was the amount of dividend payable to Loola preferred shareholders? a. 99,000 b. 90,000 c. 78,750 d. 135,000

1. Loola Company’s outstanding share capital at December 31, 2020 consisted of 45,000 shares of 5% cumulative Preference Share, P10 par, fully participating as to dividends. No dividends       were in arrears 300,000 Ordinary Share, P1 par. On December 31, 2020, Loola declared dividends of P150,000. What was the amount of dividend payable to Loola preferred shareholders? a. 99,000 b. 90,000 c. 78,750 d. 135,000 2. Kristine‘s outstanding share capital at December 31, 2020 comprised the following: 45,000 shares of 10% cumulative preference share capital, 5% participating par value of P10 per share 300,000 shares of ordinary share capital, par value of P1 per share. On December 31, 2020, TLW Co. declared dividends of P150,000. What is the amount of dividends payable to the company’s ordinary shareholders? a. P52,500 b. P71,250 c. P82,500 d. P30,000 3. A company was organized on January 1, 2020 at which date it issued 300,000 ordinary shares of P6 par value at P13 per share. The following are the additional equity transaction occurred during the year: (1) Profit for the year amounts to P975,000 (2) Declared and paid cash dividends amounts to P225,000 (3) On January 10, 2020, the Company purchased 9,000 treasury shares at P12 per share. (4) On December 31, 2020, the Company sold 4,500 treasury shares at P8 per share and retired the remaining treasury shares. The company uses the cost method of accounting for treasury shares. What is the total shareholder’s equity on December 31, 2020? a. P4,596,000 b. P4,524,000 c. P4,578,000 d. P4,632,000 4. Joy Corporation has the following data on stock issued and outstanding on December 31, 2020: 10% Preference share, P10 par 450,000 Ordinary share capital, P10 par 300,000 Retained earnings 450,000 Dividends were in arrears for 2 years, excluding the current year. The Board of Directors declared P300,000 cash dividends. Assume that the preferred share is non-cumulative and participating. The ordinary dividend per share is? a. 1 b. 2 c. 3 d. 4 5. In 2019, Gabby Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the entity reacquired 3,000 shares at P150 per share and immediately cancelled these 3,000 shares. In relation with the retirement of shares, what amount should be debited to share premium and retained earnings respectively? a. P30,000 and P420,000 b. P420,000 and 0 c. P150,000 and P270,000 d. P270,000 and P150,000 6. Star Company had the following classes of stock outstanding at December 31, 2020 Ordinary Share, P20 par                          P12,000,000       12% Preference Share Capital, P100 par             cumulative and fully participating            6,000,000       10% Preference Share Capital, P100 par             cumulative and non-participating            3,000,000 Dividends on preference shares have been in arrears for 2018 and 2019. On December 31, 2020, total cash dividends of P9,000,000 was declared. What is the amount of dividends payable to the 12% Preference Shares? a. 2,940,000 b. 2,040,000 c. 3,660,000 d. 3,540,000 7. Mary Inc. was incorporated on January 1, 2020. Information about its authorized shares is shown below: Ordinary share capital, 450,000 shares, no par, P10 stated value P4,500,000 Class “A” preference share capital, 75,000 shares, P50 par value 3,750,000 Class “B” preference share capital, 30,000 shares P60 par value 1,800,000 In 2020, Mary issued 150,000 shares for total amount of P2,700,000 and 30,000 Class “A” preference shares for P60 per share. Furthermore, 15,000 shares of Class “B” preference shares were subscribed by shareholders at P75 per share, the company received P375,000 down payment. The subscription contract calls for the payment of the balance on February 1, 2021. Profit for the year amounted to P300,000. What is the amount of total shareholder’s equity as of December 31, 2020? a. P 5,925,000 b. P 5,550,000 c. P 5,250,000 d. P 5,175,000 8. Assume the following information for Stemp Co. at December 31, 2020. 12% Cumulative and Non-participating Preference Share, P10 par, 15,000 shares issued and outstanding Ordinary Share, P5 par, 60,000 shares issued and outstanding. The company declared and paid cash dividends amounting to P30,000 for the year. At the beginning of the year, undeclared dividends amounted to P13,500. What is the amount of dividends paid to the company’s ordinary shareholders? a. P0 b. P6,000 c. P13,500 d. P30,000