During 20x2, the following transactions related to the capital share of the ABC Corp occurred:Jan 7Declared a P .75 cash dividends on 150,000 shares of preference shares.Feb 7Paid dividends on preference sharesMarch 4Declared a P ,50 cash dividend on 200,000 ordinary shares with P 20 par value.March 18Paid dividends on ordinary sharesJune 30Split ordinary shares 4 for 1.July 9Purchased 12,000 shares of ABC Corp’ own ordinary shares at P 32 per share; acquisition recorded at costSept 10Declared a cash dividend of P .40 per share on ordinary shares outstandingSept 18Paid dividends on ordinary shares.Required: Provide the entries to record the above transactions.

There are mainly two types of dividends : Cash dividend and Stock dividend. In cash dividend,…

Answered: During 20x2, the following transactions…

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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During the year, Cellular Land, Inc. issued 1,500 shares of its $0.50 stated value common stock for $15 per share, and declared and paid cash dividends totaling $0.25 per share. By what amount does contributed capital increase as a result of these events? $22,500 $750 $21,750 $22,125
Spring Company is authorized to issue 7500,000 shares of $2 par value common stock. In its first year, the company has the following transactions: March 1: Issued 400,000 shares of stock at $9.75 per share June 15: Purchased 10,000 shares of treasury stock for $9 per share Sept 1: Declared a cash dividend of 10-cents per share on common stock Sept. 15: Record date for cash dividend Oct, 1: Paid cash dividend Journalize the transactions.
APPLE Company was organized at the beginning of the current year and was authorized to issue share capital of 200,000 ordinary shares with par value of ₱20. The following transactions occurred during the year:• Received subscriptions at par value from incorporators equal to 45% of the authorized share capital• Received 60% down payment on the subscriptions from the incorporators• Received full payment on 50,000 shares originally subscribed• An equipment was acquired by issuing 5,000 shares. Share are currently traded at this time at ₱25/share.• Received cash subscriptions to 10,000 shares at ₱28/share• Partially collected 50% of the amount subscribed on the latest subscriptions.• Collected in full 90% of the latest subscription. 10% defaulted, thus the corporation offered the shares on a public auction and awarded it to the highest bidder who paid the delinquency balance and the incurred ₱5,000 auction expense.• Net income for the year-ended was ₱800,000. 1. What is the balance of…
1. At the current year end, Spurs Corporation declared 4,000 ordinary shares of P 100 par value in connection with a share capital dividend. The market value per share on the date of declaration was P 150. The shareholder’s equity accounts immediately before issuance of the share capital dividend shares were as follows: Ordinary share capital, P 100 par,50,000 shares authorized, 20,000 shares outstanding - P 2,000,000 Ordinary Share premium -P3,000,000 Retained earnings -P 1,500,000What amount should be reported as retained earnings immediately after the share capital dividend?a. P2,100,000b. P900,000c. P1,100,000d. P1,500,000
The charter of a corporation provides for the issuance of 118,000 shares of common stock. Assume that 44,000 shares were originally issued and 3,100 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1-per-share dividend is declared? a.$44,000 b.$118,000 c.$40,900 d.$3,100
Un Deux Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and 300,000 shares of P30 par value ordinary shares. During the year, the company declared and paid a total cash dividend of P900,000. The corporation did not declare and pay any dividends last year. Required: For each of the following independent cases, compute the total dividends to be received by each class of share. 1. The preference share is non-cumulative and non-participating 2. The preference share is cumulative and non-participating 3. The preference share is non-cumulative and participating 4. The preference share is cumulative and participating
Use the following information for the next three (3) questions: At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What total amount should be reported as share premium at year-end?
Please show all work and answers: 1. On January 1st, ZYX company purchased 1,000 shares of its own stock at $37 per share. On January 20th, ZYX later reissues or sells 199 shares of treasury stock for $12 per share. On January 20th, the balance in Additional paid in capital-Treasury stock is credit balance of $0. What is the amount debited to Retained earnings on January 20th? 2. ABC issues 14,000 shares of common stock to investors on January 1 for cash, with the investors paying cash of $24 per share. The par value of the stock is $5 per share. What is the amount applied to additional paid in capital? 3. On January 1st, ABC company issues a stock dividend of 18%. ABC has 101,000 shares outstanding with a par value of $1. ABC also has 210,000 shares authorized. The market price per share January 1st is $32. What is number of new shares issued for stock dividend? 4. On January 1st, ZYX company purchased 1,200 shares of its own stock at $36 per share. On January 20th, ZYX later reissues…
BCA Company issued 1,000 shares with P 5 par to Atty Bryant as compensation for 1,000 hours of legal services performed Atty Bryant usually bills P 160 per hour for legal services. On the date of issuance, the share had a fair value of P 140. By amount would the share premium account increase as a result of the transaction?*

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Jan 7	Declared a P .75 cash dividends on 150,000 shares of preference shares.
Feb 7	Paid dividends on preference shares
March 4	Declared a P ,50 cash dividend on 200,000 ordinary shares with P 20 par value.
March 18	Paid dividends on ordinary shares
June 30	Split ordinary shares 4 for 1.
July 9	Purchased 12,000 shares of ABC Corp’ own ordinary shares at P 32 per share; acquisition recorded at cost
Sept 10	Declared a cash dividend of P .40 per share on ordinary shares outstanding
Sept 18	Paid dividends on ordinary shares.