1. The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20 par, Preference and P70 par, Ordinary. During the fiscal year ending December 31, 2012, the company had the equity transactions in chronological order as reflected in the table below. Dividends were paid at the end of the fiscal year on the ordinary share at P1.20 per share and on the preference at the preference rate. Profit for the year was P850,000. No. of shares Price per share Issue of preference share 10,000 P28 Issue of ordinary share 35,000 70 Reacquisition and retirement of preference 2,000 30 Purchase of treasury ordinary share 5,000 80 Share split 2-for-1 Reissue of treasury ordinary share 5,000 52 Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financial position were: P1,000,000 Preference Share Capital, 50,000 shares Ordinary Share Capital, 100,000 shares 7,000,000 Share Premium - Preference 400,000 Share Premium-Ordinary 1,200,000 Retained Earnings 550,000

1. The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20 par, Preference and P70 par, Ordinary. During the fiscal year ending December 31, 2012, the company had the equity transactions in chronological order as reflected in the table below. Dividends were paid at the end of the fiscal year on the ordinary share at P1.20 per share and on the preference at the preference rate. Profit for the year was P850,000. No. of shares Price per share Issue of preference share 10,000 P28 Issue of ordinary share 35,000 70 Reacquisition and retirement of preference 2,000 30 Purchase of treasury ordinary share 5,000 80 Share split 2-for-1 Reissue of treasury ordinary share 5,000 52 Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financial position were: P1,000,000 Preference Share Capital, 50,000 shares Ordinary Share Capital, 100,000 shares 7,000,000 Share Premium - Preference 400,000 Share Premium-Ordinary 1,200,000 Retained Earnings 550,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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