On December 31,2016, the shareholders' equity section of the financial position of Kent Corp. was as follows: Ordinary share par valueP1.00, 1,000 shares authorized 300 shares issued and outstanding P 300 Share Premium 1,800 2,000 P4,100 Retained Earnings Total On January 1,2017, the Board of Directors declared a share dividends of one share for every three shares owned. Accordingly, 100 additional shares were issued. On January 2, the fair market value of Kent's share was P10 per share. The most appropriate presentation of Kent's shareholders' equity on January 2, 2017, following the issuance of the 100 additional share, is: a. Ordinary share P400 b. Ordinary share P400 Share Premium 1,700 Share Premium 2,000 P4,100 1,800 1,900 P4,100 Retained Earnings Retained Earnings Total Total C. Ordinary share P500 d. Ordinary share P500 Share Premium 1,700 Share Premium 1,600 2,000 P4,100 Retained Earnings Retained Earnings 1,900 P4,100 Total Total

On December 31,2016, the shareholders' equity section of the financial position of Kent Corp. was as follows: Ordinary share par valueP1.00, 1,000 shares authorized 300 shares issued and outstanding P 300 Share Premium 1,800 2,000 P4,100 Retained Earnings Total On January 1,2017, the Board of Directors declared a share dividends of one share for every three shares owned. Accordingly, 100 additional shares were issued. On January 2, the fair market value of Kent's share was P10 per share. The most appropriate presentation of Kent's shareholders' equity on January 2, 2017, following the issuance of the 100 additional share, is: a. Ordinary share P400 b. Ordinary share P400 Share Premium 1,700 Share Premium 2,000 P4,100 1,800 1,900 P4,100 Retained Earnings Retained Earnings Total Total C. Ordinary share P500 d. Ordinary share P500 Share Premium 1,700 Share Premium 1,600 2,000 P4,100 Retained Earnings Retained Earnings 1,900 P4,100 Total Total

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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On December 31, 2017, Dow Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2018, was $2,100,000. The income tax rate is 40%. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2019, if Merrill’s 2019 net income is at least $500,000. In 2018, Merrill’s net income was $630,000. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at…
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1. At March 31, 2012, True had 9,571,200 shares issued with a par value of $4.00 per share and $62,600 share held in treasury. On April 25, 2012, the company announced that its Board of Directors approved payment of a regular quarterly cash dividend of .75 per share, payable on May 15, 2012, to common shareholder of record on May 7,2012. Assume no shares were acquired or sold by the company after March 31. Give the journal entry to record the declaration of the cash dividend.
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Joy Company was authorized to issue common stock of 100,000 shares with P50 par value on January 1, 2014. Eighty thousand shares were sold during the first year at P50 per share and 4,000 shares were alter reacquired as treasury at P65 per share. A stock split of 5-for-1 was approved on December 31, 2014. On January 31, 2015, a 10% stock dividend was paid and on March 1, 2015, the treasury stock was reissued at P68 per share. How many shares were outstanding on March 1, 2015?
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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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