At December 31, 2020, the equity accounts of Sample Corp. were as follows: 10% Preference share capital (P100 par, 50,000 shares) P5,000,000 Ordinary share capital (P10 par, 1,500,000 shares) 15,000,000| Retained earnings 5,000,000 Sample Corporation has never paid cash or share dividend. The capital accounts have not changed since it began operations on January 1, 2016. Determine the amount of dividends to be paid to preference shareholders and ordinary shareholders, respectively, under the following situation: The preference shares are cumulative and participating up to 15%.

At December 31, 2020, the equity accounts of Sample Corp. were as follows: 10% Preference share capital (P100 par, 50,000 shares) P5,000,000 Ordinary share capital (P10 par, 1,500,000 shares) 15,000,000| Retained earnings 5,000,000 Sample Corporation has never paid cash or share dividend. The capital accounts have not changed since it began operations on January 1, 2016. Determine the amount of dividends to be paid to preference shareholders and ordinary shareholders, respectively, under the following situation: The preference shares are cumulative and participating up to 15%.

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 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

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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 >
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…
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T1.
At December 31, 2020, the balance sheet of Meca International Included the following shareholders' equity accounts: ($ in millions) $ 60 300 410 Shareholders' Equity Common stock, 60 million shares at $1 par excess of par Paid-in capital Retained earnings Required: Assuming that Meca International views Its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in millions (1.e.. 10,000,000 should be entered as 10).) 1. On February 12, 2021, Meca reacquired 1 million common shares at $13 per share. 2. On June 9, 2022, Meca reacquired 2 million common shares at $10 per share. 3. On May 25, 2023, Meca sold 2 million treasury shares at $15 per share. Determine cost as the weighted-average cost of treasury shares. 4. For the previous transaction, assume Meca determines the cost of treasury shares by the…
The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 240 1,680 1 1,100 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On Feb ary 5, 2021, TNL Systems purchased 6 million shares at $10 per share. On July 9, 2021, the corporation sold 2 million shares at $12 per share. On November 14, 2023, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to…
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14
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