Canada, Inc. had 500,000 ordinary shares outstanding before a share split occurred, and 1,500,0 shares outstanding after the share split. The share split was a. 2-for-5. b. 3-for-1. c. 1-for-5. d. 5-for-1.
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Canada, Inc. had 500,000 ordinary shares outstanding before a share split occurred, and 1,500,0 shares outstanding after the share split. The share split was 2-for-5. b. 3-for-1. 1-for-5. d. 5-for-1.
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- Item No. 4 is based on the following information: nysg bns n Luningning Corporation sold for cash 400 preference shares with a par value of P 50 per share at P56 per share. Also, 600 ordinary shares with no par value but with stated value of P 100 per share were sold for P 102 per share. 4. What would be the effect of the transaction on the total Share Premium account? a. PO. C. P 2,400. b. P 1,200. d. P 3,600.22. At the beginning of current year, Alto Company declared 1 for 5 reverse share split, when the market value of share was P100. Prior to the split, the entity had 10,000 shares of 10 par value issued and outstanding. What is the par value of share after the share split?4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
- Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.2. Harmony Corporation declared share dividends of 1 share for every 5 shares owned on its 200,000 issued and outstanding shares with a par value of P50 per share. at the time of declaration, the market value of ordinary shares was P80 per share and P100 per share at the time the shares were issued. What amount should be charged to Retained Earnings account and credit liability accounts, respectively? Group of answer choices 2,000,000 and -0- 2,500,000 and 2,500,000 4,000,000 and -0- 4,000,000 and 4,000,000Consider firm X and Y.The firm had total earrings of $400,000 and shares outstanding of $95,000. Firm X per share market value is 4.5, Firm X per share book value is$4.5. Firm Y per share had total earnings of $300,000 and shares outstanding of $192,500. FirmY per share market value is $24.5 Firm Y per share book value is $312.875. a. Assume that firm X acquires FirmY by issuing long term debt to purchase all the shares outstanding at a merger premium of$6.875. Assuming that neither firms has any debt before merger, what would be the total assets for the new company XY? b.Assume that Firm Y acquires Firm X by issuing long term debt to purchase all the shares outstanding at a merger premium of $2.375. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company YX round your answer to four decimal places after the point
- 3. The following share dividends were declared and distributed by Party Company: Percentage of ordinary shares outstanding Market value Par value 10% 225,000 150,000 25% 600,000 450,000 How much should be debited to Retained Earnings at the time of declaration? Group of answer choices 600,000 675,000 750,000 825,000Problem 6. The following data were taken from the records of Valencia Frutti Corporation: Share Capital, P50 par, 3,000 shares, Authorized 1,000 shares issued Premium on Share Capital P50,000 3,000 Accumulated Profits (Losses) The Corporation reacquires 100 shares at P55.00 per share, and later sold these share for: a) P55.00 per share (at cost) b) P60.00 per share (above cost) c) P50.00 per share (below cost) Required: 1. Journal Entry to record the acquisition of the treasury shares. 2. Journal entry to record the sale of the treasury shares under the three given cases. 10,000of flag A newly formed company sold stock for $545,000. The share had a par value of $5 each. After the transaction, the Paid-In Capital in Excess of Par, Common Stock, account had a balance of $215,000. How many shares did the company sell? O a. 62,000 O b. 152,000 O c. 43,000 O d. 109,000 O e. 66,000
- 22. Garnean Inc. issued $50,000 in common share dividends. Its net income for the year was $250,000. What is Garnean's dividend payout ratio? a.0.2 b.0.5 c.2.5 d.55. Harvey Corporation shows the following in the shareholders' equity section of its statement of financial position: The stated value of its common shares is $0.25 and the total balance in the common shares account is $50,000. Also noted is that 15,000 shares are currently designated as being repurchased but not yet cancelled. The number of shares outstanding is a.215,000. b.200,000. c.196,250. d.185,000.Problem 2: (Book Value per share with Two Classes of Preference Shares)TINT Corporation presents the following condensed statement of financial position as of the close of the year:Cash ₱ 520,000 Accounts Payable ₱ 550,000Other Assets 1,333,000 Ordinary Share Capital 550,0005% Preference Share Capital 330,0007% Preference Share Capital 220,000Accumulated Profits 203,000Total Assets ₱ 1,853,000 Total Equities ₱ 1,853,000The 5% preference share capital is cumulative, the 7% preference share capital is non-cumulative, but both are fully participating. The par value of all shares is ₱100. Requirements:C. Compute for the book value per share for: 5. Ordinary shares6.a. 5% Preference shares b. 7% Preference shares