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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Problem 18-21 (AICPA Adapted) At the beginning of current year, Trojan Company was organized with the following capital structure: 10% cumulative preference share capital, par. value P10, liquidation value P12, authorized, issued and outstanding 100,000 shares, P1,000,000. Ordinary share capital, par value P100, authorized 40,000 shares, issued and outstanding 30,000 shares, P3,000,000. The net income for the current year was P6,000,000 and no dividends were declared. 1. What amount should be reported as book value per odinary share? а. 290 b. 293 с. 300 d. 333 2. What amount should be reported as book vålue per preference share? а. 100 b. 130 c. 110 d. 120
Problem 21-14 (IAA) At the beginning of current year, Precious Company was with a par value of P6 per share. organized with an authorization of 1,200,000 ordinary shares capital transactions: During the current year, the entity had the following share January July 5 Issued 675,000 shares at P10 per share share 28 Purchased 90,000 treasury shares at P11 per Sold the 90,000 shares held in treasury at P18 per share bein December 31 350,000 The entity used the cost method to record the purchase and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? SH a. 3,330,000 b. 2,070,000 c. 2,700,000 d. 0 753 200 000.001 6: STABIL
Problem 16-12 (AICPA Adapted) Maxim Company acquired 40,000 ordinary shares on October 1 for P6,600,000 to be held for trading. On November 30, the investee distributed a 10% ordinary share dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 c. 500,000 d. 600,000
11.Clara Company provided the following accounts at year-end: 128 Authorized share capital 5,000,000 Unissued share capital 2,000,000 Subscribed share capital 1,000,000 Subscription receivable 400,000 Share premium 500,000 Retained earnings unappropriated 600,000 Retained earnings appropriated 300,000 Revaluation surplus 200,000 Treasury shares, at cost 300,000 What amount should be reported as shareholder's equity at year-end? a. 5,200,000 b. 5,500,000 c. 4,900,000 d. 5,000,000
19.2 The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following: Ordinary shares, par value P20, authorized 200,000 shares, issued and outstanding , 120,000 shares – P2,400,000 Share premium – P480,000 Retained Earnings – P1,540,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: Acquired 2,000 shares of its shares for P70,000 Sold 1,200 treasury shares at P40 per share 2 for 1 stock split Retired the remaining treasury shares Retained Earnings –? Shareholder’s Equity –?
Problem 16-3 (IAA) Effective Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares Investment in Benguet ordinary shares, 10,000 shares 1,200,000 1,000,000 During the current year, the following transactions were completed: 1. Purchased 4,000 ordinary shares of ANA Company for P300,000. 2. Received 2,000 ordinary shares of Benguet Company in lieu of a cash dividend of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3. Purchased 6,000 ordinary shares of ANA Company for P420,000. 4. Received semiannual dividend on SMC Company 12% preference share. 5. ANA ordinary share was split on a 2-for-1 basis. 6. Sold 8,000 ordinary shares of ANA Company at P85 less transaction costs of 5%. Use average approach. Required: a. Prepare journal entries to record the transactions. b. Prepare a summary of the portfolio of investments stating the number of shares and the…
Problem 1. The following data refers to the Shareholders' Equity section of Beleleng Corporation at 31 December 20A. 1. Preference share, authorized to issue 5,000 shares at P50 par value per share. Issued shares - 3,000 P150,000 2. Share Premium - Ordinary shares 3. Ordinary Share - Authorized to issue 10,000 shares at 5,000 P100 par value per share. Issued shares - 7,000 700,000 2,000 400,000 4. Share Premium - Preference shares 5. Accumulated Profits and Losses Accumulated Profits and Losses, Jan. 1, 20A Net Profit for the year P150,000 250,000 6. Other components of Equity: Revaluation Increment on Property 10,000 Required: 1. Shareholders' Equity as of December 31, 20A 2. Statement of Changes in Equity for the year ended December 31, 20A
1. At December 31, the Shareholders’ Equity section shows: Ordinary Share, P 5 par, value 1,320,000 shares issued P 6,600,000 Share Premium-Ordinary P1,400,000 Retained Earnings P 500,000 Treasury Shares, at cost, 120,000 shares P 700,000The book value per share of Ordinary Share is: a. P5.91 b. P6.44 c. P6.50 d. P7.082. Tiktok Company issued 10,000 shares of its P5 Par value common stock having market value of P25 per share and 15,000 shares of its P15 par value preferred stock having a market value of P20 per share for a lump sum of P480,000. How much of the proceeds would be allocated to the common stock? a. P250,000 b. P255,000 c. P218,182 d. P50,000
uhe beginning of current year, Jade Company reported the following sharcholders' equity: Share capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 8,100,000 ( 900,000) All of the outstanding and treasury shares were originally issued for PIl per share. During the current year, the following events or transactions occurred relating to shareholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April 1 and payable on April 15. This was the first dividend ever declared. • September 15- The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of PO.20 per share payable carly next year. * Atcurrent year-end, the entity is being sued by two separate parties for…
S14-4 Issuing shares and interpreting shareholders' equity At 30 June, Adelaide Hills Ltd shows the following on its balance sheet (which includes the previous year's amounts for comparison): 30 June Current year Previous year $00 $000 Share capital (2 000 000 ordinary shares issued) (1 850 000 ordinary shares issued) Retained earnings $ 4000 $ 3 500 21 600 20 500 Requirements How much did total share capital increase during the current year? What caused total share capital to increase? How can you tell? 2 Did Adelaide Hills make a profit or a loss for the current year? How can you tell? 1