On April 1, 2014, Friends Corp., a newly formed company had the following shares issued and outstanding: Preference shares, P50 par, 6,000 shares originally issued at P100. Ordinary shares, P20 par, 20,000 shares originally issued at P60. Friends shareholder's equity should report: 1. Preference share capital - 2. Ordinary share capital -

On April 1, 2014, Friends Corp., a newly formed company had the following shares issued and outstanding: Preference shares, P50 par, 6,000 shares originally issued at P100. Ordinary shares, P20 par, 20,000 shares originally issued at P60. Friends shareholder's equity should report: 1. Preference share capital - 2. Ordinary share capital -

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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Lee Company has the following capital structure. Common stock, $1 par, 100,000 shares issued and outstanding On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Lee Company would record Select one: a. A debit to Retained Earnings for $5,000. b. A credit to Dividends Payable for $70,000. c. A credit to Paid-in Capital in Excess of Par—Common Stock for $70,000. d. A credit to Retained Earnings for $75,000.
IV. The following data were taken H&D Company: Beginning capital balances: Ordinary share capital, December 31, 2011 Accumulated profits P2,000,000 1,100,000 Transactions occurred during the year: Dividends declared during the year Current year income Ordinary shares issuance, 20,000 shares, par 100 Share premium P 100,000 480,000 2,000,000 400,000 Required: Compute for the ending balance of the shareholder's equity.
9A. How much is the excess of par to be used for book value per share computation? 9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: XX.XX) On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares-P1,500,000 Share premium in excess of par-P 862,500 . Reserve for Treasury shares - 725,000 • Treasury ordinary shares-435,000, Treasury preference shares-P 290,000 • Retained earnings, unrestricted-P 2,168,000 Net income for the year - 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included.
ABC Co. is authorized to issue 5,000,000, $6 par ordinary shares and 100,000, $50 par 9% cumulative preference shares. At the end of 2017, the company has the following equity accounts: Account |Share capital-ordinary Share capital-preference |Share premium-ordinary |Share premium-preference Treasury shares |Retained Earnings Balance @ 31/12/2017 ($) 1,800,000 | 1,000,000 400,000 500,000 320,000 | 2,000,000 Additional information: SHARE There were 260,000 ordinary shares outstanding at 31/12/2017. • The company did not pay any preference dividends for the year 2017. The following equity transactions occurred during the year 2018 (in chronological order). 1. Declared and paid the preference dividends in arrears by reissuing 10,000 treasury shares. 2. Issued 5,000 preference shares at $55 per share. 3. Sold 15,000 treasury shares at $9 per share. 4. Announced a 2 for 1 share split for ordinary shares 5. Declared and distributed a 5% share dividend to outstanding ordinary shareholders.…
Jimin Corporation had the following shareholders’ equity accounts before the declaration of dividend: >Ordinary Share Capital, P5 par, 500,000 shares authorized-P1,500,000 >Additional Paid in Capital- P1,550,000 > Retained Earnings- P1,210,000 Market value of the Ordinary Share Capital on the date of declaration is P30 per share and P45 per share on the date of issuance. Assuming that the corporation declared and distributed a 10% share dividend, what was the total contributed capital after the issuance of the bonus shares?
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Jupiter corporation had the following shares outstanding at December 31. 2018: Ordinary shares, par P80 - 320.000: 6% preference shares, par P80 - 160.000. Accumulated profits for dividend distribution amounted to P64.400. No dividends were declared for 2016 and 2017. If the preference share capital is cumulative and fully participating, what is the dividends per share of the preference share? (Round off answers to two decimal places.)
Bizarre Company acquired 6,000 shares with P1 par value at P36 per share. During 2012, the entity issued 3,000 of these shares at P50 per share. The cost method is used in accounting for treasury shares. What accounts and amounts should be credited to record the issuance of the 3,000 shares? a. Share capital for P6,000, share premium for P102,000, and retained earnings for P42,000. b. Share capital for P6,000 and share premium for P144,000. c. Treasury shares for P108,000 and share premium for P42,000. d. Treasury shares for P108,000 and retained earnings for P42,000.
JKL Corp. reported the following amounts in the shareholders' equity section of its December 31, 2015, statement of financial position: Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) P400,000 Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) 100,000 Share premium – Ordinary shares 192,000Accumulated profits 1,200,000 The following transactions occurred during 2016: At the beginning of 2016, the company…
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