ABC Co. has authorized share capital of 10,000 8% participatingpreference shares with P100 par value and 100,000 ordinary shareswith P10 par value. ABC Co. reported this on December 31,2020:Preference share capitalOrdinary share capitalShare premiumRetained EarningsTreasury ordinary shares - 1,000 at costShareholders' equityP500,000900,00090,000138,000(20,000)P1,608,000Dividends on preference shares are in arrears for the current year. IfABC Co. is liquidated, how much would be received by Mr. Chris Pin whoholds 20,000 voting shares?

The stockholders' equity section of a balance sheet represents the total contribution of the owners.…

Answered: Dividends on preference shares are in…

Dividends on preference shares are in arrears for the current year. If ABC Co. is liquidated, how much would be received by Mr. Chris Pin who holds 20,000 voting shares?

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

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

ABC Co. has authorized share capital of 10,000 8% participating
preference shares with P100 par value and 100,000 ordinary shares
with P10 par value. ABC Co. reported this on December 31,2020:
Preference share capital
Ordinary share capital
Share premium
Retained Earnings
Treasury ordinary shares - 1,000 at cost
Shareholders' equity
P500,000
900,000
90,000
138,000
(20,000)
P1,608,000
Dividends on preference shares are in arrears for the current year. If
ABC Co. is liquidated, how much would be received by Mr. Chris Pin who
holds 20,000 voting shares?

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