On December 31, 2019 and 2020, Carr Company had outstanding 40,000 preference shares with P100 par value and 6% cumulative, and 200,000 ordinary shares with P10 par value. On December 31, 2020, dividends in arrears on the preference shares were P120,000. Cash dividends declared in 2020 totaled P440,000. What is the dividend payable on each class of share capital in 2020? Show your solution.
On December 31, 2019 and 2020, Carr Company had outstanding 40,000 preference shares with P100 par value and 6% cumulative, and 200,000 ordinary shares with P10 par value. On December 31, 2020, dividends in arrears on the preference shares were P120,000. Cash dividends declared in 2020 totaled P440,000. What is the dividend payable on each class of share capital in 2020? Show your solution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2019 and 2020, Carr Company had outstanding 40,000 preference shares with P100 par value and 6% cumulative, and 200,000 ordinary shares with P10 par value. On December 31, 2020, dividends in arrears on the preference shares were P120,000. Cash dividends declared in 2020 totaled P440,000. What is the dividend payable on each class of share capital in 2020? Show your solution.
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