Ordinary Share Capital, P20 par. Share Premium. P8,000,000 2,400,000 1,275,000 Retained Earnings. All ordinary shares outstanding at Dec. 31,2020 were issued in 2020 for P26 a share, On Jan, 4,2021, Amelia reacquired 20,000 of its ordinary shares at P24 a share and retired them. Immediately after the shares were retired, total Share Premium was Select the correct response: O P2,400,000 O P2,000,000 O P2,320,000 O 2280,000 ( Previous Continue >

Ordinary Share Capital, P20 par. Share Premium. P8,000,000 2,400,000 1,275,000 Retained Earnings. All ordinary shares outstanding at Dec. 31,2020 were issued in 2020 for P26 a share, On Jan, 4,2021, Amelia reacquired 20,000 of its ordinary shares at P24 a share and retired them. Immediately after the shares were retired, total Share Premium was Select the correct response: O P2,400,000 O P2,000,000 O P2,320,000 O 2280,000 ( Previous Continue >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What are the effects on the books of Heaven Inc. upon the cash sale of additional ordinary shares? A. Cash will increase by P900,000.B. Cash will increase by P900,000 and ordinary share capital will increase by P900,000.C. Cash will increase by P900,000, ordinary share capital will increase by P500,000 and share premium will increase P400,000.D. Cash will increase by…
ABC Company had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no additional ordinary shares were issued. On January 1, 2020, ABC issued 400,000 noncumulative and nonconvertible preference shares. During 2020, ABC declared and paid P200,000 cash dividend on the ordinary share and P110,000 annual dividend on the preference share. Net income for 2009 was P750,000. What should be the basic earnings per share?(round answer to two decimal places)
On October 1, 2021, ATN Corporation, a newly formed company had the following shares issued and outstanding: Preference shares, P50 par, 6,000 shares originally issued at P100; Ordinary share P20 par,20,000 shares originally issued at P60. ATN shareholders' equity should report preference share capital, ordinary share capital and paid-in capital in excess of par, respectively at: a.) P600,000, P1,200,000 0 b.) P300,000, P1,200,000 P300,000 c.) P300,000, P400,000 P1,100,000 d.) P600,000, P400,000 P800,000 SHOW COMPLETE SOLUTION
28. On January 1, 2019, the statement of financial position of ABC Co. shows the following information: Share capital (authorized 10,000 shares with par value of P100) 800,000 Share premium 160,000 Retained earnings 540,000 Total shareholders’ equity 1,500,000 On July 1, 2019, ABC reacquires 1,000 shares at P90. If ABC will reissue the shares for P140 each, how much will be the increase/decrease in Share premium?
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What amount should be reported as retained earnings on December 31, 2021? A. 2,500,000B. 2,750,000C. 3,250,000D. 4,750,000
winter provided the following shareholders’ equity on December 31, 2021: Preference share capital, 10% P50 par (noncumulative and nonparticipating) 1,000,000 Preference share capital, 8% P50 par (cumulative and nonparticipating) 1,500,000 Ordinary share capital, P100 2,500,000 Share premium 500,000 Retained earnings 600,000 Dividends have been paid on the preference share up to December 31, 2018. Book value per 8% preference share
Cane company issued share capital of 20,000 shares with P5 par at P10 per share On Dec 31, 2019 Cane’s retained earnings were P300,000. In March 2020 Cane reacquired 5,000 shares at P20 per share. In June 2020 Cane sold1,000 of these shares to its corporate officers for P25 per share. Cane uses the cost method to record treasury shares. Net income for the year ended Dec 31, 2020 was P60,000. At Dec 31, 2020, what amount should Cane report as unappropriated retained earnings? __________________
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
summer provided the following shareholders’ equity on December 31, 2021: Preference share capital, 10% P50 par (noncumulative and participating) 1,000,000 Preference share capital, 8% P50 par (cumulative and participating) 1,500,000 Ordinary share capital, P100 2,500,000 Share premium 500,000 Retained earnings 600,000 Dividends have been paid on the preference share up to December 31, 2018. Book value per 8% preference share
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. How much the total shareholders' equity on December 31, 2021? A. 9,650,00B. 11,150,000C. 6,650,000D. 8,150,000
The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000 shares of P10 par value ordinary shares issued and outstanding at their meeting on December 10, 2020. This is payable on March 31,2021 to shareholders of record on December 31,2020.The correct entry to record to be made on December 10,2020 :* Debit Dividends Payable P500,000 and Credit Cash P500,000 No entry should be made O Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000 O Debit Dividends Payable P250,000 and Credit Cash P250,000
XXX Company had 100,000 of P 15 par value ordinary shares on January 1,2019. During 2019, the following transactions pertaining to its ordinary shares occurred: • Purchased 5,000 shares as treasury at P 30 each. • The ordinary share was split 3-for-1. • Reissued 3,000 treasury shares at P 14 each. What is the total cost of the remaining treasury shares at the end of 2019?