On April 8, 2019, GODLY Corporation declared and issued a 25% ordinary share capital dividend. Prior to this date, GODLY had 20,000 issued and outstanding shares of ₱2 par value ordinary shares. The carrying value of each share is ₱20 at the time of declaration of dividend. As a result of the share capital dividend, how much will be debited to retained earnings? *
Q: On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney will pay…
A: The question is based on the concept of Financial Accounting.
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Retained earning means amount of profit remain after all the adjustment of expense and various…
Q: As a result of this stock dividend, Ziek's total stockholders' equity
A: Given information is: On May 1, 2019, Ziek Corp. declared and issued a 10% ordinary stock dividend.…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: The journal entries to record the issue of bonus shares and EPS for 2020 and 2021 are presented…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: Retained earnings are the accumulated free reserves of the entity. Dividends paid are made from the…
Q: On July 1, 2020, Tomas Company's board of directors declared a 10% share dividend. The market price…
A: No. of shares issued under stock dividend = No. of outstanding ordinary shares x share dividend rate…
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Issue of bonus shares will not result in any cash flows into the organization, but the shareholder's…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 6%…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: 0,000 shares f
A: Introduction Capital Gain on Shares: It is possible to realist a capital gain on the appreciation…
Q: n April 8, 2019, GODLY Corporation declared and issued a 25% ordinary share capital dividend. Prior…
A: The amount to be debited to retained earnings will be equal to the total par value of shares issued…
Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…
A: Note: There will ve no change in paid-up capital and additional paid-in capital balance due to…
Q: At December 31,2018 and 2019, TJH Company had outstanding 4,000 shares of P 100 par value, 12%…
A: Preference shares are the investment securities which get fixed return in the form of dividends and…
Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…
A: No. of shares issued after reverse stock split = No. of common stock outstanding x reverse stock…
Q: On January 1, 2021, MNO Company acquired 12,500 of the outstanding common shares of Esther…
A: The portion of the dividend is based on the portion of holdings. The holding can be calculated by…
Q: Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000…
A: A dividend means the amount given to the shareholder of the company as profit distribution by the…
Q: 2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s…
A: Explanation of Concept Dividend is the part of earning which is been distributed to the shareholder…
Q: Savona Bhd has outstanding 3,000,000 ordinary shares. The balanced in its contributed share capital…
A: The shareholder's equity section represents the total equity that belongs to the shareholders.
Q: The ABC Company began operations in January 2018 and reported the following results for each of its…
A: Introduction: Preference share holders are those capital providers for the company who receives…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: No. of shares = Share capital / Par value per share = 5,000,000/100 = 50,000 shares
Q: On June 1, 2015, Golden Warriors Corporation declared a share capital dividend entitling its…
A: Stock dividend is known as a method of capitalizing the retained earning. Under this, no profit is…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 6%…
A: Cumulative preference shares are those shares that are paid dividends for the past periods first, in…
Q: On August 15, 2021, EasyMoney, Inc.s Board of Directors meets and declares that EasyMoney will pay a…
A: Retained earnings refers to the account that accumulates the earnings of the company that are not…
Q: Pangan Corp. acquired 4,000 shares of Agustin, Inc. ordinary shares on Oct. 20, 2018 for P660,000.…
A: Answer with explanation are as follows
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: The Dark Red Company, which started operations in 2018, paid dividends at the end of 2018,2019 and…
A: The participating preference shareholder is entitled for fixed preference dividend and also the…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: Calculation of bonus shares issued: Existing no of shares = 36 million Bonus shares proportionate =…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: Cash dividends are distribution of accumulated earnings by a companies to its stockholders.…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Share premium is the amount received on issue of ordinary shares in excess of its par value.…
Q: Indigo Inc., was organized on January 1, 2017, at which date it issued 200,000 shares of P 10 par…
A: Total shareholder includes ordinary share capital, the premium on share capital, and retained…
Q: At December 31,2018 and 2019, ABC Company had outstanding 4,000 shares of P 100 par value, 12%…
A: Formula: Preferred dividend = Total preferred shares x PAR value x Rate of preferred shares.
Q: On July 1, 2022, BFAR Corp. declared and issued 25% share dividend to its ordinary shareholders.…
A: Share dividend means the issue of dividend in the form of shares rather than in the form of cash.…
Q: he Gangnam Company began operations in January 2019 and reported the following results for each of…
A: calculation of book value of ordinary share are as follows
Q: On June 1, 2020, Sunny Corporation declared a share capital dividend entitling its shareholders to…
A: No. of shares issued and outstanding = No. of shares issued - shares in the treasury = 65000 shares…
Q: On May 8, 2022, BFAR Corp. declared 10% share dividend to its preference shareholders to be…
A: Share Dividend - Share Dividend is the shares issued by the company to its already existing…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: 1. Determination of Journal entries to record issue of bonus shares Date Account title and…
Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…
A: Solution: Amount should be credited to share capital on issuance = Nos of shares issued * Par value…
Q: On May 1, 2020, ABC Corporation, a newly formed company had the following share capital issued and…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Stockholder's equity on 31 Dec 2020 Ordinary Share Capital Authorized 950,000 shares of…
Q: At December 31, 2020 and 2019, Atsumu Corporation had 100,000 Ordinary shares and 10,000 cumulative…
A: Formula: Preferred dividend = Total preferred shares value x Preferred dividend rate.
Q: The shareholders’ equity of Jungkook Corporation as of October 1, 2020 is presented below: Ordinary…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price per share.
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 6%…
A: The preference shareholders have the right to get the dividend before any other shareholder get.
Q: The Shareholders’ Equity section of Green Corporation at December 31, 2019 showed the following: 8%…
A: Annual Preferred Dividend = Preference Share Capital x Rate of Dividend = P2,000,000 x 0.08 =…
Q: Ivy Corp declared a share capital dividend entitling its shareholders to one additional share for…
A: >Share Capital dividend or Stock dividend is the dividend given to stockholders in form of new…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On June 1, 2016, Pat Corporation declared a bonus issue entitling its shareholders to one additional…
A: The journal entries are prepared to record daily transactions of the business.
Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Step by step
Solved in 2 steps
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?On April 8, 2019, GODLY Corporation declared and issued a 25% ordinary share capital dividend. Prior to this date, GODLY had 20,000 issued and outstanding shares of ₱2 par value ordinary shares. The carrying value of each share is ₱20 at the time of declaration of dividend. As a result of the share capital dividend, how much will be debited to retained earnings? a. P75,000 b. P40,000 c. P10,000 d. P100,000
- During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share?The balance in the retained earnings of HAWKEYE Corporation on December 31, 2020 and 2021 respectively are P720,000 and P582,000. The net income for 2021 was P500,000. A share dividend was declared and distributed which increased ordinary share capital by P200,000 and share premium by P110,000. A cash dividend was declared and paid. What is the amount of cash dividends declared and paid? a. ₱ 638,000 b. ₱ 442,000 c. ₱ 328,000 d. ₱ 248,000Ivy Corp declared a share capital dividend entitling its shareholders to one additional share for each share held on June 1, 2021. At the time the dividend was declared, the market value was P100 per share and the par value was P50 per share. On this date, Ivy had 65,000 shares issued and 5,000 shares in the treasury.How much is the amount to be debited to retained earnings on the declaration of dividends?
- During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share? (PRESENT YOUR ANSWER IN TWO (2) DECIMAL PLACES, example: xx.xx)Please answer in good accounting form. Thankyou During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share?Jeremiah Company had the following classes of shares outstanding as of December 31, 2020. Ordinary shares, ₱20 par value, 22,000 outstanding Preference shares, 6%, ₱100 par value, cumulative and fully participating, 1,100 shares were outstanding. The last payment of reference dividend was on December 31, 2018. On December 31, 2020, a total cash dividend of ₱99,000 was declared. What are the amounts of dividends payable on both the ordinary and preference shares?
- HAWKEYE Corporation has the following shareholders' equityaccounts as of December 31, 2021: 6% Preference shares, ₱10 par -₱200,000; Ordinary shares, ₱10 par - ₱300,000; Accumulated profits -₱80,000. Dividends have not been declared for the years 2019 to 2021.The whole amount of the accumulated profits of ₱80,000 was declaredas dividend on December 31, 2021. How much dividend per share shall anordinary shareholder have if the preference share is cumulative andparticipating up to 21%? ( Present your answer for this problem in 2decimal places, example X.XX)The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? a. ₱ 5,750,000 b. ₱ 8,050,000 c. ₱ 8,000,000 d. ₱ 7,600,0001. HAWKEYE Corporation has the following shareholders' equity accounts as of December 31, 2021: 6% Preference shares, ₱10 par - ₱200,000; Ordinary shares, ₱10 par - ₱300,000; Accumulated profits - ₱80,000. Dividends have not been declared for the years 2019 to 2021. The whole amount of the accumulated profits of ₱80,000 was declared as dividend on December 31, 2021. How much dividend per share shall an ordinary shareholder have if the preference share is cumulative and participating up to 21%? ( Present your answer for this problem in 2 decimal places, example X.XX)