7. The directors of PeteCorporation, whose P50 parvalue ordinary share iscurrently selling at P70 pershare, have decided todeclare a share dividend.Pete has an authorization for250,000 ordinary shares, hasissued 100,000 shares ofwhich 10,000 shares are nowheld as treasury, and desiresto capitalize P945,000 of theRetained Earnings balance.To accomplish this, thepercentage of share dividendthat the directors shoulddeclare isa. 18.9%O b. 15%c. 12%O d. 9%

Dividend: A dividend is a payment made by a firm to its shareholders in exchange for its earnings.…

Answered: 7. The directors of Pete Corporation,…

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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6. GAMORA Corporation’s shareholders’ equity is composed of 10,000, ₱10 par ordinary shares, ₱40,000 share premium, and accumulated profits of ₱600,000. If a 40% bonus issue is declared when the shares are selling for ₱50 per share, what amount should be transferred from the accumulated profits account to the share premium account? * ₱ 40,000 ₱ 200,000 ₱ -0- ₱ 160,000
The shareholders’ equity of Jungkook Corporation as of October 1, 2020 is presented below: Ordinary Share Capital, 100,000 shares, P 10 par- P1,000,000 Ordinary Share Premium- P500,000 Retained Earnings- P800,000 During October, 2020, the corporation had the following transactions: > Oct. 5- Reacquired 40,000 shares of its own Ordinary Shares for P 520,000. > Oct. 15- Sold 20,000 Treasury Shares at P 15 per share > Oct. 25- Sold another 10,000 Treasury shares for P 70,000. What is the balance of the Retained Earnings after the above transactions?
Bonita, Inc., has 5500 shares of 5%, $100 par value, noncumulative preferred stock and 55000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $99700 dividend, the O preferred stockholders will receive 1/10th of what the common stockholders will receive. O $27500 will be held as restricted retained earnings and paid out at some future date. O preferred stockholders will receive $27500 and the common stockholders will receive $72200. O preferred stockholders will receive the entire $99700.
Ivy Corp declared a share capital dividend entitling its shareholders to one additional share for each share held on June 1, 2021. At the time the dividend was declared, the market value was P100 per share and the par value was P50 per share. On this date, Ivy had 65,000 shares issued and 5,000 shares in the treasury.How much is the amount to be debited to retained earnings on the declaration of dividends?
AUBURN Corporation had 120,000 of ordinary shares issued and outstanding at January 1, 2021. OnOn January 2 of the same year, the company issued 80,000 preference shares. During the year, the corporation declared and paid P420,000 cash dividend on the ordinary shares and P240,000 on the preference shares. Net income for the year was P1,500,000. What should be the basic earnings per share in 2021? A. ₱ 10.50 B. ₱ 9.00 C. ₱ 15.75 D. ₱ 12.50
AlMazoon Co has issued 60,000 ordinary shares (equity shares) of OMR 0.600 baisa each and 30,000 6% preference shares of OMR 1 each. Its profits after taxation for the year 2021 were OMR 22,100. The directors have decided to pay OMR 4,100 as ordinary dividend. You are required show: 1. The amount paid as dividends 2. The amount of retained profits 3. The balance of retained earning at the year end assuming the company had an opening balance of RO 30,000. 4. The dividend per share on ordinary shares.
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. How much the total shareholders' equity on December 31, 2021? A. 9,650,00B. 11,150,000C. 6,650,000D. 8,150,000
National Inc., a corporation that can only legally issue ordinary shares with par value, recently completed a 2-for-1 stock split on a stock that recently pays P15 dividend per share. The total legal capital of National Inc. is P31,000,000 and it has a total number of outstanding shares at 980,000. What is the new par value of each shares? a. 15.00 b. 7.50 c. 15.82 d. 31.63
4: The board of directors of Energy Manufacturing is in the process of declaring a cash dividend of $2 per share. Energy Mfg. is authorized to issue 200,000 shares of common stock. The company has issued 125,000 shares to date, and has reacquired 15,000 shares, which are held in treasury. a. How many shares of common stock are eligible to receive a dividend? b. Assume that the board declares the dividend. Prepare the appropriate journal entries on the (1) date of declaration, (2) date of record, and (3) date of payment.
9. Mr. JFINEX owns 100 shares of stock in Finance Corporation with a market value of 30,000. The Company declares a stock dividend of 20%. How many shares does JFINEX own after? A) 120 shares with a market value of 24,000 B) 100 shares with a market value of 24,000 C) 120 shares with a market value of 30,000 D) 80 shares with a market value of 30,000

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