An entity was organized at the beginning of the current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred: January 1 February 1 Sold 30,000 shares at P150 per share Issued 2,000 shares for legal services with a fair value of P250,000. The shares on this date are quoted at P140 per share purchased 5,000 treasury shares at March 1 cost of P120 per a share October 31 issued P5,000,000 convertible bonds at are quoted at 98 without he conversion feature. Declared a 2-for-1 share split when the market value of 120. The bonds November 15 the share was P160 December 15 Sold 10,000 shares at P75 per share The net income for the year was P2,000,000 December 31

An entity was organized at the beginning of the current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred: January 1 February 1 Sold 30,000 shares at P150 per share Issued 2,000 shares for legal services with a fair value of P250,000. The shares on this date are quoted at P140 per share purchased 5,000 treasury shares at March 1 cost of P120 per a share October 31 issued P5,000,000 convertible bonds at are quoted at 98 without he conversion feature. Declared a 2-for-1 share split when the market value of 120. The bonds November 15 the share was P160 December 15 Sold 10,000 shares at P75 per share The net income for the year was P2,000,000 December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A stock's par value refers to the: O A. Value assigned per share by the corporate charter. O B. Market value of the stock on the date of the financial statements. OC. Maximum selling price of the stock.O D. Issue price of the stock.
sharad
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?
What us earnings per share? What us its significance to the shareholders? How is it computed if: Only one class of share capital is outstanding Two classes of share capital are outstanding
14. What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: a. Preference share capital are noncumulative b. Preference share capital are cumulative 15. What is the significance of book value per share? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding? 16. What is earnings per share? What is its significance to the shareholders? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding?
7. Basic earnings per share will serve as a guide to investors as to the attractiveness of ordinary shares as an investment. TRUE FALSE 8. Book value per share is computed by dividing the net assets to the total number of shares outstanding. TRUE FALSE 9. Which of the following is entitled to dividends? Total outstanding liability Total authorized shares Total shares issued Total shares issued, net of treasury shares
When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared
2. A certain company gave out P 25 dividend per share for its common stock. The market value of the stock is P 92. Determine the stock yield ratio.
When a corporation has outstanding both common and preferred stock Select one: a. Earnings per share is computed without regard to the amount of dividends declared on common stock. b. Basic and diluted earnings per share are reported only if the preferred stock is cumulative c. Earnings per share is reported for each type of stock outstanding d. Earnings per share is computed without regard to the amount of the annual preferred dividends.
26. The following form part of shareholder’s equity, except Group of answer choices a. Treasury shares b. Conversion option c. Retained earnings d. Subscription receivable collectible within twelve months after the end of reporting period
In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.
What is most likely to happen to the earnings per share and market price of a certain stock when a firm issues stock dividends?