Cyclone Corporation was authorized to issued 1, 000 shares of P100 par,8% cumulative preference share and 100, 000 shares par ordinary share. The equity account balances at December 31, 2012 are as follows:Cumulative preference shareP 50, 000Ordinary share90, 000 Share premium 9, 000 Retained Earnings 13, 000 Treasury stock, ordinary – 100 sharesat cost( 2, 000) P 160, 000 Dividends on preference shares are in arrears for the year 2011. The bookvalue of a share of ordinary share at December 31, 2012 should bea. P117.80 c. P137.50 b. P127.50 d. P113.33

Ordinary shares, often referred to as common shares, seem to be company shares that provide…

Answered: Cyclone Corporation was authorized to…

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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Cyclone Corporation was authorized to issued 1, 000 shares of P100 par,
8% cumulative preference share and 100, 000 shares par ordinary share. The equity account balances at December 31, 2012 are as follows:

Cumulative preference share	P 50, 000
Ordinary share	90, 000
Share premium	9, 000
Retained Earnings	13, 000
Treasury stock, ordinary – 100 shares at cost	( 2, 000)
	P 160, 000

Dividends on preference shares are in arrears for the year 2011. The book
value of a share of ordinary share at December 31, 2012 should be
a. P117.80 c. P137.50
b. P127.50 d. P113.33

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