1. "P Corporation had the following shareholders equity account before the declaration of cash dividend: 10%, P100 par preference share capital P10,000,000; P50 par ordinary share capital P10,000,000; Share premium preference share P1,000,000; Share premium ordinary share P2,000,000; Retained earnings P20,000,000. There were two years preference shares dividends in arrears as of the beginning of the current year. The company declared a P5,000,000 cash dividend. Determine the allocation of the cash dividend assuming the preference share is non-cumulative and fully participating." Answer: "P2,500,000 to preference shares and P2,500,000 to ordinary shares"
Please give solutions and explanation to the three questions. The correct answer is already given, just provide me with solution.
1. "P Corporation had the following shareholders equity account before the declaration of cash dividend: 10%, P100 par
Answer: "P2,500,000 to preference shares and P2,500,000 to ordinary shares"
During its first year of operations, TLTH Corporation had the following transactions relating to its ordinary shares:
- Issued 80,000 shares for cash at P60 per share.
- Issued 500 shares to lawyers in payment of a bill for P35,000 for services rendered in helping the company to register the corporation
- Issued 30,000 shares for cash at P68 per share.
- Issued 10,000 shares for cash at P75 per share.
If there is no par value but the stated value is P60 per share, what is the total legal capital? Give your answer in this format x,xxx,xxx
Answer: 7,625,000
"P Corporation had the following shareholders equity account before the declaration of cash dividend: 10%, P100 par preference share capital P10,000,000; P50 par ordinary share capital P10,000,000; Share premium preference share P1,000,000; Share premium ordinary share P2,000,000; Retained earnings P20,000,000. There were two years preference shares dividends in arrears as of the beginning of the current year. The company declared a P5,000,000 cash dividend. Determine the allocation of the cash dividend assuming the preference share is cumulative and non-participating."
Answer: "P3,000,000 to preference shares and P2,000,000 to ordinary shares"
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