The records of Alamko Corporation showed the following data:Ordinary share capital, parP10, authorised 1,000,000shares, issued 300,0003,000,000Share Premium300,000Treasury shares, 10,000 atcost(150,000)Retained Earnings5,000,000The Board of Directors declared a 30% stock dividend. Stocks are selling at P15. The entry to record on the date of distribution isSelect the correct response:Stock dividendsрayable870,000Ordinary share870,000Stock dividends900,000payableOrdinary share900,000Stock dividends1,350,000payableOrdinary share1,350,000Stock dividends1,305,000payableOrdinary share1,305,000

Stock dividend is non cash dividend issued to stockholders that increases share capital of the…

Answered: Ordinary share capital, par P10,…

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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Preferred stock, participating, 20,000 shares, P15 par value, 14% dividend rate 300,000 Common stock, 5,000 shares, P20 par value 100,000 The dividend rate declared on the common stock is 12 percent, and dividend declared for the year are 60,000. Determine the amount of dividend to be paid to preferred stockholders and common stockholders.
The capital accounts of BHUTAN COMPANY on June 30, 2012, are as follows Ordinary shares, P10 par, 50,000 shares issued and outstanding P 500,000Share premium 250,000Retained earnings 3,135,000The company’s ordinary shares are selling at this time at P20.What entries would you make in each of the following cases?a. A 10% stock dividend is declared and issued.b. A 30% stock dividend is declared and issued.c. A 4-for-1 stock split is declared and issued.
Caesar Cruise Lines, Inc. issues 6000 shares of common stock with a $1 par value. The issue price of the stock is $20 per share. What is the journal entry required to record the issuance of the shares? Group of answer choices Cash 120,000 Common Stock—$1 par 6000 Addl. Paid-in Capital in Excess of Par—Common 114,000 Cash 20,000 Common Stock—$1 par 6000 Addl. Paid-in Capital in Excess of Par—Common 14,000 Cash 6000 Common Stock 6000 Cash 120,000 Common Stock 120,000
The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015: DETAILS Premises 10% Mortgage Retained earnings Goodwill Debtors Creditors General reserves Management fees Ordinary shares@ $0.50 5% Preference shares @ $1 Share premium Motor vehicle Prov. for depreciation on motor vehicle 10% Debenture Mortgage interest Debenture interest Cost of sales Closing stock Insurance Wages & salaries Interim ordinary shares dividend Bank Sales Commission received DR 800,000 40,000 100,000 110,000 30,000 80,000 7,000 5,000 750,000 80,000 20,000 60,000 2,000 2,084,000 CR 250,000 65,000 30,000 200,000 200,000 50,000 12,000 120,000 53,000 1.100,000 4,000 2,084,000 Notes: a. Provide for depreciation on motor vehicle at 5% on the reducing balance b. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000 c. The goodwill should be written down by 25% d. Transfer $25,000 from profits to the general reserves e. Corporation tax is estimated at $30,000
Prestige Investments had the following preferred stock outstanding at the end of a recent year: $25 par, 10% 6,000 shares $42 par, 8%, cumulative 11,000 shares $50 par, 12%, cumulative, convertible 2,000 shares $80 par, 11%, nonparticipating 15,000 shares Required: 1. Determine the amount of annual dividends on each issue of preferred stock and the total annual dividend on all four issue Issue 1 ($25 par, 10%) of preferred stock Issue 2 ($42 par, 8%, cumulative) of preferred stock Issue 3 ($50 par, 12%, cumulative, convertible) of preferred stock Issue 4 ($80 par, 11%, nonparticipating) of preferred stock Total annual dividend 2. Calculate what the amount of dividends in arrears would be if the dividends were omitted for 1 year.
outstanding stock is composed of 10,000 shares of $100 par, noncumulative, preferred 8% stock, and 50,000 shares of no - par common stock. Preferred dividends have been paid every year except for the previous year. If $380,000 is to be distributed as a dividend for the current year what total amount would be distributed to the common stockholders? a) $160,000 b) $ 80,000 c) $380, 000 d) $300,000
Common stock with a total par value of $50,000 (par value of $0.50 per share) have been issued, and 5,000 shares of treasury stock with a total cost of $25,000 have been repurchased. How many total shares are outstanding? Group of answer choices
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Share Issuances for CashHenlay, Inc., issued 10,000 shares of $40 par value preferred stock at $96 per share and 8,000 shares of no-par value common stock at $30 per share. The common stock has no stated value. All issuances were for cash. a. Prepare the journal entries to record the share issuances.b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $20 per share.c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $4 per share. General Journal Ref. Description Debit Credit a. Preferred stock Issued shares of preferred stock. Issued shares of no-par value common stock. b. Common stock Issued shares of no-par value common stock, stated value. c. Common stock Issued shares of common stock.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized, 10,000 shares issued, and 9,000 shares outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 100,000 50,000 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is: Multiple Choice $1.15. $1.28. $11.50. $10.50. $10.00.
The following information relates to X, Y, and Z as at 30 June 2021 Stock Share price Number of shares X 10 2,000,000 Y 15 6,000,000 Z 20 10,000,000 During the year the following activities occurred; A two for one stock split on Y Payment of 10% dividend on Z. It can be assumed that the entire dividend paid will be reinvested in shares of Z limited. On 30 June 2022 the stock prices of X, Y and Z were sh 12, sh 10 and sh 20 respectively. Required; New index value given that the beginning value index is 100. Explain how secondary markets benefit investors. State and explain the main risks faced by financial institutions in the course of conduct of their business.

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