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 - P 4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - P 1,500,000 • Share premium in excess of par - P 862,500 • Reserve for Treasury shares - P 725,000 • Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000 Retained earnings, unrestricted -P 2,168,000 Net income for the year - P 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

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 - P 4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - P 1,500,000 • Share premium in excess of par - P 862,500 • Reserve for Treasury shares - P 725,000 • Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000 Retained earnings, unrestricted -P 2,168,000 Net income for the year - P 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be? The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be?
How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating?
When preference shares are participating as to dividends, the dividend allocated to preference shareholders in the remaining balance of dividends after providing for preference and ordinary shareholders O Increases if preference shares are cumulative, and decreases if preference shares are non-cumulative O Increases, if preference shares are non-cumulative O Increases, if preference shares are cumulative O Is the same, regardless of whether preference shares are cumulative or non- cumulative
14. What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: a. Preference share capital are noncumulative b. Preference share capital are cumulative 15. What is the significance of book value per share? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding? 16. What is earnings per share? What is its significance to the shareholders? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding?
Compute the dividend yield for each of these four separate companies. Which company’s stock wouldprobably not be classified as an income stock? SNIPP
Considering the same amount of earnings available for declaration as dividends, which of the following kinds of preference shares would result to the least amount of dividends for preference shareholders? cumulative and non-participating cumulative and participating non-cumulative and non-participating non-cumulative and participating
In Munn's Shareholders' equity, how many preference shares are outstanding?
Which of the following is not a method that may be used to account for treasury shares?a. Cost methodb. Par value methodc. Retained earnings methodd. Constructive retirement methodC
Contrast the differences between a stock dividend and a stock split.
Which of the following statement is TRUE? Preference shares have: A. variable dividends and stable market values B. fixed dividends and volatile market values C. variable dividends and volatile market values D. fixed dividends and stable market values
1. What are the possible effects of issuing right shares on the company financial health?
What are the differences between common stocks and preferred stocks in terms of the rights of stockholders and dividend characteristics?