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On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market price of Bettina's 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2010 when the market price of the shares was P100 per share. What amount should be charged to the Accumulated Profits and Losses account as a result of the share dividend?

On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market price of Bettina's 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2010 when the market price of the shares was P100 per share. What amount should be charged to the Accumulated Profits and Losses account as a result of the share dividend?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market price of Bettina's 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2010 when the market price of the shares was P100 per share. What amount should be charged to the Accumulated Profits and Losses account as a result of the share dividend? Your answer What should FROZEN report as total contributed capital in its December 31, 2018 statement of financial position? FROZEN Corporation was incorporated on January 1, 2018 with the following authorized capitalization: • 40,000 ordinary shares, no par value, stated value of P40 per share • 10,000 shares of 5% cumulative preference share, par value of P10 per share During 2018, FROZEN issued 24,000 ordinary shares for a total consideration of P1,200,000 and 6,000 preference share at P16 per share. In addition, on December 29, 2018, subscriptions for 2,000 preference shares were taken at a purchase price of P17. These subscribed shares were paid for on January 2, 2019. Your answer
Transcribed Image Text:On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market price of Bettina's 400,000 outstanding ordinary shares, P50 par value, was P80 per share on the date of declaration. The share dividend was distributed on September 1, 2010 when the market price of the shares was P100 per share. What amount should be charged to the Accumulated Profits and Losses account as a result of the share dividend? Your answer What should FROZEN report as total contributed capital in its December 31, 2018 statement of financial position? FROZEN Corporation was incorporated on January 1, 2018 with the following authorized capitalization: • 40,000 ordinary shares, no par value, stated value of P40 per share • 10,000 shares of 5% cumulative preference share, par value of P10 per share During 2018, FROZEN issued 24,000 ordinary shares for a total consideration of P1,200,000 and 6,000 preference share at P16 per share. In addition, on December 29, 2018, subscriptions for 2,000 preference shares were taken at a purchase price of P17. These subscribed shares were paid for on January 2, 2019. Your answer
Venus Company issued 20,00O shares of its P70 par value ordinary shares and 8,000 shares of its P80 par value preference share capital for a total of P1,8O0,000. At this date, the company's ordinary shares were selling at P80 per share and the preference was selling at P100 per share. (1) What amount of the proceeds should be allocated to the preference shares? Your answer What is the par value per share? Mars Corporation recorded the following journal entry: Land Preference share capital Share premium-preference To record issuance of preference shares @120 Per share. 450,000 420.000 30,000 Your answer
Transcribed Image Text:Venus Company issued 20,00O shares of its P70 par value ordinary shares and 8,000 shares of its P80 par value preference share capital for a total of P1,8O0,000. At this date, the company's ordinary shares were selling at P80 per share and the preference was selling at P100 per share. (1) What amount of the proceeds should be allocated to the preference shares? Your answer What is the par value per share? Mars Corporation recorded the following journal entry: Land Preference share capital Share premium-preference To record issuance of preference shares @120 Per share. 450,000 420.000 30,000 Your answer
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