How much is the total dividends payable to ordinary shareholders? 2. What is the balance of the accumulated profits, unappropriated account at the end of 2012?
Underline Highlight Corp. has two classes of share capital outstanding 12%, P100 par value
Preference share capital - 5,000 shares P500,000
Ordinary share capital - 50,000 shares 2,500,000
Share premium- PS 200,000
Share premium- OS 2,000,000
The following data summarize the transactions for 2012:
a. Issue of 20,000 share of ordinary at P50 per share on Jan. 20
b. Purchase of 5,000 of the company’s own ordinary shares from stockholders at P60 per share on Feb. 20
c. A 2 for 1 share split on the ordinary on April 1.
d. 20% stock dividend to ordinary shares was declared on April 30 and distributed on May 20. The prevailing fair value of the share on this date was P60 per share.
e. Reissuance of 3,000 reacquired shares at P40 per share on May 3.
f. Donation of 15,000 shares of ordinary stocks at P40 per share on June 5.
g. Reissuance of 10,000 donated shares at P40 per share on July 1.
h. Declaration of P12 cash dividends to preference shares and P3 per share dividends to ordinary on November 30 to stockholders as of December 20 payable on January 30 of the next year.
i. The company appropriated 20% of the adjusted unappropriated accumulated profits (after other appropriations) for plant expansion.
The net income for the year after adjustments was P1,200,000 and the unrealized holding loss from remeasurement of the company’s available for sale securities was at P200,000.
Required:
1. How much is the total dividends payable to ordinary shareholders?
2. What is the balance of the accumulated profits, unappropriated account at the end of 2012?
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