Ellie Company provided the following shareholders' equity on December 31, 2020: Preference share capital, P100 par, 96,000 shares issued, 12% cumulative and fully participating Ordinary share capital, P50 par, 240,000 shares issued Share premium Retained earnings 9,600,000 12,000,000 6,000,000 8,400,000 Dividends on the preference shares are in arrears for two years including the current year. On December 31, 2020, the entity intends to pay cash dividend of P10 per share to the ordinary shareholders. What is the total amount of dividends to be declared for the preference and ordinary shareholders?
Ellie Company provided the following shareholders' equity on December 31, 2020: Preference share capital, P100 par, 96,000 shares issued, 12% cumulative and fully participating Ordinary share capital, P50 par, 240,000 shares issued Share premium Retained earnings 9,600,000 12,000,000 6,000,000 8,400,000 Dividends on the preference shares are in arrears for two years including the current year. On December 31, 2020, the entity intends to pay cash dividend of P10 per share to the ordinary shareholders. What is the total amount of dividends to be declared for the preference and ordinary shareholders?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Ellie Company provided the following shareholders' equity on December 31, 2020:
Preference share capital, P100 par, 96,000 shares issued,
12% cumulative and fully participating
Ordinary share capital, P50 par, 240,000 shares issued
Share premium
Retained earnings
9,600,000
12,000,000
6,000,000
8,400,000
Dividends on the preference shares are in arrears for two years including the current year. On December 31, 2020, the
entity intends to pay cash dividend of P10 per share to the ordinary shareholders. What is the total amount of dividends to
be declared for the preference and ordinary shareholders?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9bc7e058-8e09-4d03-8a1e-2df24c0507c0%2F3f45eac1-d206-408d-85f2-42b20eb96102%2Fqni0omr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ellie Company provided the following shareholders' equity on December 31, 2020:
Preference share capital, P100 par, 96,000 shares issued,
12% cumulative and fully participating
Ordinary share capital, P50 par, 240,000 shares issued
Share premium
Retained earnings
9,600,000
12,000,000
6,000,000
8,400,000
Dividends on the preference shares are in arrears for two years including the current year. On December 31, 2020, the
entity intends to pay cash dividend of P10 per share to the ordinary shareholders. What is the total amount of dividends to
be declared for the preference and ordinary shareholders?
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