Following is the shareholders' equity section of the balance sheet of the Optimum Corporation: Share capital: Common shares, 100,000 shares $650,000 authorized, 65,000 shares isued Total share capital $650,000 Retained earnings 349,000 Total shareholders' equity $999,000 The common shares are currently selling for $15.50 per share. The balance in the Common Shares account after the distribution of a 15% common stock dividend is: O $650,00g

Following is the shareholders' equity section of the balance sheet of the Optimum Corporation: Share capital: Common shares, 100,000 shares $650,000 authorized, 65,000 shares isued Total share capital $650,000 Retained earnings 349,000 Total shareholders' equity $999,000 The common shares are currently selling for $15.50 per share. The balance in the Common Shares account after the distribution of a 15% common stock dividend is: O $650,00g

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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A corporation purchases 41500 shares of its own $30 par common stock for $45 per share, recording it at cost. What will be the effect on total stockholders’ equity? Increase by $1245000 Decrease by $1867500 Increase by $1867500 Decrease by $1245000
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
The records of Alamo Corporation showed the following data Ordinary share capital, par P50 authorized 100,000 shares, issued 30,000 shares Compute the liability for dividends for each of the following independent case a The Board of Directors declared 15% cash dividend b The Board of Directors declared P5 cash dividend c The Board of Directors declared a merchandise dividends of P10 per share d The Board of Directors declared 25% stock dividends Stock are selling at P60 per share e The Board of Directors declared 10% stock dividends Stock are selling at P60 per share
The Corporation shareholders' equity section of the Statement of Financial Position includes the following accounts and balances: 12% Preference Share Capital, P100 par, 5,000 shares issued P500,000 Preference Share Premium 50,000 Retained earnings 750,000 The corporation decided to retire 2,000 of the Preference Shares at P115 per share. How much is the indicated gain or loss on retirement of the Preference Shares? Put a parenthesis if it is an indicated loss.
Olive Corporation has 75,000 outstanding shares of P5 par value ordinary share capital and 30,000 shares outstanding 5% P100 par value preference share capital. During October, the board of directors made the following dividend declarations: October 4 - Preference dividend, payable on January 7 to preference shareholders of record on December 15. October 21 - P3 per share dividend payable on January 7 to ordinary shareholders of record on December 15. Compute for the total cash dividends distributed to: Preference shareholders: Ordinary shareholders:
The following information is available for the common shares of DEF Co.: 50 million shares authorized, 25 million shares issued and outstanding, and 1 million shares in the public float. Calculate DEF's market capitalization if the current market price of the common shares is $25 $25,000,000 O $625,000,000 O $650,000,000 $1,250,000,000
A corporation has issued 50,000 shares of $100 par common stock and holds 6,000 of these shares as treasury stock. If the corporation declares a $2 per share cash dividend, what amount will be recorded as cash dividends? Group of answer choices $44,000 $88,000 $96,000 $100,000
Ulrich Corporation has the following shareholders' equity on December 31, 2021: Shareholders' equity Share capital $10 convertible preferred shares, 10.000 shares authorized, 5,000 shares issued Common shares, 200.000 shares authorized, 90.000 shares issued Total share capital Retained earnings Total shareholders' equity The average per common share amount is $5.70 $9. $570,000 1800 000 2,370,000 450.000 $2.820.000 $20. $11.40.
The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, Year 3, is as follows: Shareholders’ Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 34,500 shares $3,450,000 Common stock, $5 par value; authorized, 2,000,000 shares; issued, 405,000 shares 2,025,000 Paid-in capital in excess of par—preferred 97,000 Paid-in capital in excess of par—common 897,000 Retained earnings 3,200,000 $9,669,000 The following events occurred during Year 4: Jan. 5 10,000 shares of authorized and unissued common stock were sold for $7 per share. 16 10,000 shares of authorized and unissued preferred stock were sold for $108 per share. Apr. 1 76,000 shares of common stock were repurchased for the treasury at a price of $16 per share. Superior uses the cost method to account for treasury stock. Sept. 1 3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of…
he records of Alamko Corporation showed the following data: Ordinary share capital, par P10, authorised 1,000 000 shares, issued 300,000 3,000,000 Share Premium 300,000 Treasury shares, 10,000 at (150,000) cost Retained Earnings 5,000,000 The Board of Directors declared a 15% stock dividend. Stocks are selling at P15. The entry to record on the date of declarationis Select the correct response: Retained Earnings 652,500 Stock dividends for distribution 435.000 Share Premium 217,500 Retained Earnings 450,000 Stock dividends for distribution 450,000 Retained Earnings 435,000 Stock dividends for distribution 435,000 Retained Earnings 675,000 Stock dividends for O distribution 450,000 Share Premium 225,000
The following is the abstract of the shareholders' equity of Shake Corporation before declaration of cash dividends 12% Preference Share Capital, par P80, 30,000 shares all issued and outstanding P3,000,000 Ordinary Share Capital, par P40, 20,000 shares all issued and outstanding P1,000,000 Retained Earnings 5,500,000 The Board declared dividends of P1,200,000. No dividends were distributed last year. Required: Determine how much dividends the preference and ordinary shares will receive given the following independent situations: d. The Preference share is cumulative and fully participating