Please need help with this accounting question At 31st of December 2020, the equity accounts of Sample Corp. were asfollows:10% Preference share capital (P100 par, 50,000 shares) P5,000,000Ordinary share capital (P10 par, 1,500,000 shares)Retained earnings15,000,0005,000,000Sample Corporation has never paid cash or share dividend. The capitalaccounts have not changed since it began operations on January 1,2016. Determine the amount of dividends to be paid to preferenceshareholders and ordinary shareholders, respectively, under thefollowing situation: The preference shares are cumulative and fullyparticipating.

Step 1: Determine the Total Cumulative Dividends Owed to Preferred ShareholdersSince the preferred…

Answered: At 31st of December 2020, the equity…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

See similar textbooks

Similar questions

The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss?Using the data, how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. Using the data, how much will be credited to Cash? Using the data, how much will be debited to Ordinary Share Premium??
WHAT IS THE TOTAL CONTRIBUTED CAPITAL?
BFAR Corp. maintains the following equity balances throughout the years 2020 and 2021: • 10% Preference Share Capital (20,000 shares issued and outstanding): P4,000,000 • Ordinary Share Capital (60,000 shares issued and outstanding): P6,000,000 Preference shares are non-cumulative but fully participating. The company did not declare cash dividends during 2020. In 2021, the company declared P1,215,000 cash dividends. How much is the dividend per share of ordinary shares in 2021? Do not round-off intermediate computations (step calculations) but round-off final answer to nearest centavos (2 decimal places) if the final answer is not a whole number.
WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?
The Statement of Changes in Equity of Corinthian Corp. shows the following balances as of January 1, 2021: Ordinary share capital (P5 par, 250,000 shares authorirized, 137,500 issued and outstanding) 687,500Share Premium 275,000Unappropriate retained earnings 667,500Appropriate retained earnings 250,000Total Equity P1,880,000 The corporation had the following equity transactions for during 2021: Jan 15 Completed the building renovation for which 250,000 of retained earnings had been restricted. Paid the contractor P242,500, all of which is capitalized. Mar 3 Issued 50,000 additional ordinary shares for P8.00 per share. May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2021, to shareholders of…
Crystal Company provided the following shareholders' equity on December 31, 2019: Ordinary share capital, P10 par P50,000,000; Preference share capital, P100 par, 5% cumulative P100,000,000 There were no changes in share capital outstanding since the first year of operations in 2017. The entity paid cash dividends of P3.000.000 in 2017, P4,000,000 in 2018 and P12,000,000 in 2019. What amount was received as cash dividends by ordinary shareholders in 2019? Select the correct response: O 5,000,000 O 4,000,000 O 6.000,000 O 7,000,000 ( Previous Continue >
H&S Inc.’s profit for the year ended December 31, 2020, was $1,250,000. H&S’s capital structure is as follows: 500,000, $1.10, cumulative preferred shares 80,000, $3.00 non-cumulative preferred shares 200,000 common shares issued and outstanding In 2020, H&S, an entity subject to IFRS, did not declare or pay any dividends for the cumulative preferred shares. A dividend of $200,000 was declared for the non-cumulative preferred shares. What is H&S’s basic EPS? Question 24 options: a) $2.30 b) $2.50 c) $5.05 d) $5.25
The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. a. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss? b. how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. c. how much will be credited to Cash? d. how much will be debited to Ordinary Share Premium??
CanaCo showed the following cquity on its December 31, 2020, balance sheet: Contributed capital Preferred shares, $2 non-cumulative Authorized: 50,000 Issued and outstanding: 0. Common shares Authorized: Unlimited Issued and outstanding: 50.000. Total contributed capital. 6,300,000 $ 6,800,000 3,800,000 Retained earnings. SI0.600.000 Total equity. The shareholders of CanaCo expressed concerns to the board of directors at the recent annual mecting that the market price of their shares has not changed significantly over the past 18 months, yet the company is very profitable. Profit for each of the past three years has been S1.800,000, S2,300,000, and $3,500.000, respectively. Cash dividends were paid in each of these years equal to 50% of profit. Required Using the elements of critical thinking deseribed on the inside front cover, comment. Consider the following subheadings to organize your response, and try to really think about the complexity of share prices. What really will affect…
The Following information was lifted from the shareholders equity section of ABC Corp: Share Capital - 10P par value, 280K shares Subscribed Capital Subscription Receivable Share Premium Retained Earnings Treasury Share (at cost, P6/sh) 2,800,000 940,000 530,000 1,025,000 1,700,000 240,000 On June 9, 2020, the BOD declared a 3P per share cash div of record on June 25, 2020 and payable on July 6, 2020. Compute for the Cash dividend payable and RE.
The shareholders' equity of Naruto Corporation as of March 1, 2020 is presented below: Ordinary Share Capital, 50,000shares, P 100 par- P5,000,000 Ordinary Share Premium- P2,500,000 Retained Earnings- P4,000,000 On March 5, 2020, the corporation reacquired and retired the 10,000 shares at P 140 per share. On April 15, 2020, the corporation declared a deferred cash dividend of P 5 per share. Promissory Notes dated June 1 were issued and will mature within six months plus an annual interest of 12%. How much is the total scrip dividends payable?
ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021, respectively. The company has not paid any other dividends since its organization on January 1, 2019. the outstanding shares are 40,000, 12% preference shares, par P100 and 60,000 ordinary shares, par P100. If preference share are noncumulative and nonparticipating, preference and ordinary, respectively will receive in 2020: * P300,000 and P100,000 O P200,000 and P200,000 P400,000 and P-0- P320,000 and P80,000

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS