Problem 18-12 (IAA)Roma Company provided the following shareholders' equityOrdinary share capital, P50 par, 500,000 sharesauthorized and 80,000 shares issuedauthorized and 200,000 shares issuedPreference share capital, P100 par, 100,000 sharese capital oat year-end:5,000,0008,000,000authorized and 200,000 shares issued10,000,0002,000,0005,000,0002,000,000Share premiumRetained earnings31, 2019.The preference dividends are in arrears for two years andche preference rate is 12%. The preference share iseumulative and fully participating.0,000 in 2020The board of directors intended to pay cash dividend of P10per share to ordinary shareholders.hareholdersRequired:Compute the maximum amount of dividend to be declared inorder to meet the dividend objective of the board of directors.hareholders569

Unpaid for 2 Year + Current year 8000000*12%*2 + 8000000*12% = 2880000

Ordinary share capital, P50 par, 500,000 shares Preference share capital, P100 par, 100,000 shares Roma Company provided the following shareholders' equity authorized and 80,000 shares issued at year-end: on D00 8,000,000 authorized and 200,000 shares issued Share premium Retained earnings 10,000,000 2,000,000 5,000,000 mhe preference dividends are in arrears for two years and the preference rate is 12%. The preference share is 020 cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. ers Required: Compute the maximum amount of dividend to be declared in order to meet the dividend objective of the board of directors. rs

Ordinary share capital, P50 par, 500,000 shares Preference share capital, P100 par, 100,000 shares Roma Company provided the following shareholders' equity authorized and 80,000 shares issued at year-end: on D00 8,000,000 authorized and 200,000 shares issued Share premium Retained earnings 10,000,000 2,000,000 5,000,000 mhe preference dividends are in arrears for two years and the preference rate is 12%. The preference share is 020 cumulative and fully participating. The board of directors intended to pay cash dividend of P10 per share to ordinary shareholders. ers Required: Compute the maximum amount of dividend to be declared in order to meet the dividend objective of the board of directors. rs

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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