1. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 2. How much is the ordinary share capital, December 31, 2021? 3. How much will is the total cash dividends paid during the year 2021? 4. Number of fractional warrants outstanding as of December 31, 2021 5. How much is the retained earnings appropriated for contingency loss?
1. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 2. How much is the ordinary share capital, December 31, 2021? 3. How much will is the total cash dividends paid during the year 2021? 4. Number of fractional warrants outstanding as of December 31, 2021 5. How much is the retained earnings appropriated for contingency loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021?
2. How much is the ordinary share capital, December 31, 2021?
3. How much will is the total cash dividends paid during the year 2021?
4. Number of fractional warrants outstanding as of December 31, 2021
5. How much is the retained earnings appropriated for contingency loss?
Transcribed Image Text:PROBLEM 5
The capital accounts of MOONSTONE Company on December 31, 2020 are as
follows:
ORDINARY SHARES, Php 10, 1,000,000 issued and outstanding Php
10,000,000
SHARE PREMIUM
5,000,000
RETAINED EARNINGS
25,000,000
The following related transactions happened on the operating year 2021.
Feb. 15
Issued 500,000 new shares at Php 15.
Mar. 31
Paid quarterly dividends of Php 2,250,000.
May 13
Php 2,000,000 of 1,000 bonds were converted to ordinary shares at a rate of
100 shares per 1,000 bonds.
Jun. 16
Issued 11% stock dividends.
Jun. 30
Paid quarterly dividends. The dividends per share is the same as that paid in
the first quarter.
Sept. 30
MOONSTONE Company declared and distributed a 30% share dividend but
initially issued only 500,000 new shares; the other dividend shares were not
issued because some investors did not own MOONSTONE shares in even
multiple of 10. To these shareholders, MOONSTONE issued fractional share
warrants.
Oct. 15
80% of the fractional share warrants were ultimately turned in for shares thus
full shares were issued.
Nov. 31
MOONSTONE is being sued by two separate parties for patent
infringements, MOONSTONE management and outside legal counsel share
the following opinions regarding to these suits:
Suit Number Likelihood of Losing the suit
Estimated Loss
1
Reasonably possible
300,000
2
Probable
200,000
Paid quarterly dividends. The dividends per share is twice the dividends per
share last June 30.
Dec. 15
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