At December 31, 2021, the equity accounts of Greenfield Ltd. were as follows: • • 8% Preference share capital (P100 par, 40,000 shares) = P4,000,000 Ordinary share capital (P10 par, 1,000,000 shares) P10,000,000 Retained earnings = P3,000,000 = Greenfield Ltd. has never paid cash or share dividend. The capital accounts have not changed since its operations began on January 1, 2015. 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 12%.
At December 31, 2021, the equity accounts of Greenfield Ltd. were as follows: • • 8% Preference share capital (P100 par, 40,000 shares) = P4,000,000 Ordinary share capital (P10 par, 1,000,000 shares) P10,000,000 Retained earnings = P3,000,000 = Greenfield Ltd. has never paid cash or share dividend. The capital accounts have not changed since its operations began on January 1, 2015. 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 12%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At December 31, 2021, the equity accounts of Greenfield Ltd.
were as follows:
•
•
8% Preference share capital (P100 par, 40,000 shares) =
P4,000,000
Ordinary share capital (P10 par, 1,000,000 shares)
P10,000,000
Retained earnings = P3,000,000
=
Greenfield Ltd. has never paid cash or share dividend. The
capital accounts have not changed since its operations began
on January 1, 2015. 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 12%.
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