Cefner Corporation paid dividends ofP200,000 and P300,000 at the endof 2019 and 2020, respectively. Thecorporation has not paid any otherdividends since its organization onJanuary 2, 2019. The outstandingshares are 10,000, 12% preferenceshares, par P10 and 50,000 ordinaryshares, Par P100. If preference shareis non-cumulative and fullyparticipating, how much totaldividends would be received in 2019by the ordinary shareholders?

Formula: Total dividend to ordinary shareholders = Total dividend - Preference dividend

Answered: Cefner Corporation paid dividends of…

Cefner Corporation paid dividends of P200,000 and P300,000 at the end of 2019 and 2020, respectively. The corporation has not paid any other dividends since its organization on

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Cefner Corporation paid dividends of
P200,000 and P300,000 at the end
of 2019 and 2020, respectively. The
corporation has not paid any other
dividends since its organization on
January 2, 2019. The outstanding
shares are 10,000, 12% preference
shares, par P10 and 50,000 ordinary
shares, Par P100. If preference share
is non-cumulative and fully
participating, how much total
dividends would be received in 2019
by the ordinary shareholders?

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