Homework Help is Here – Start Your Trial Now!
Business
Accounting
PROBLEM 2: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31, 2015, statement of financial position: Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) Share premium -Ordinary shares Accumulated profits The following transactions occurred during 2016: a. At the beginning of 2016, the company paid the annual 2015 P1 per share dividend on preference shares and PO.50 per share dividend on ordinary shares. These dividends had been declared on December 1, 2015.Further investigations revealed that no entry has been made to account for the declaration of the said dividends. P400,000 100,000 192,000 1,200,000 b. On February 13, the company purchased 4,000 shares of its own outstanding ordinary shares for P80,000. c. On March 30, the company declared and issued ordinary shares split-up (1 is to 2). d. On June 19, the company reissued 2,800 treasury shares for an equipment with a fair value at P50,000. e. On August 1, the company issued 10,000 shares of preference shares at P15 per share. f. On September 30, the company declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share. The share dividends were subsequently issued on October 11. g. December 1, the company declared the annual 2016 P1 dividend on preference shares and the PO.25 per share dividend on ordinary shares. These dividends are payable at the beginning of 2017. h. The company registered a net income for 2016 at P940,000.

PROBLEM 2: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31, 2015, statement of financial position: Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) Share premium -Ordinary shares Accumulated profits The following transactions occurred during 2016: a. At the beginning of 2016, the company paid the annual 2015 P1 per share dividend on preference shares and PO.50 per share dividend on ordinary shares. These dividends had been declared on December 1, 2015.Further investigations revealed that no entry has been made to account for the declaration of the said dividends. P400,000 100,000 192,000 1,200,000 b. On February 13, the company purchased 4,000 shares of its own outstanding ordinary shares for P80,000. c. On March 30, the company declared and issued ordinary shares split-up (1 is to 2). d. On June 19, the company reissued 2,800 treasury shares for an equipment with a fair value at P50,000. e. On August 1, the company issued 10,000 shares of preference shares at P15 per share. f. On September 30, the company declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share. The share dividends were subsequently issued on October 11. g. December 1, the company declared the annual 2016 P1 dividend on preference shares and the PO.25 per share dividend on ordinary shares. These dividends are payable at the beginning of 2017. h. The company registered a net income for 2016 at P940,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

3. What is the amount debited to accumulated profits as a result of the 2016 cash dividend declaration?

4. What is the correct balance of the accumulated profits-unappropriated account as of December 31, 2016? 

PROBLEM 2: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31, 2015, statement of financial position: Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) Share premium - Ordinary shares Accumulated profits P400,000 100,000 192,000 1,200,000 The following transactions occurred during 2016: a. At the beginning of 2016, the company paid the annual 2015 P1 per share dividend on preference shares and PO.50 per share dividend on ordinary shares. These dividends had been declared on December 1, 2015.Further investigations revealed that no entry has been made to account for the declaration of the said dividends. b. On February 13, the company purchased 4,000 shares of its own outstanding ordinary shares for P80,000. c. On March 30, the company declared and issued ordinary shares split-up (1 is to 2). d. On June 19, the company reissued 2,800 treasury shares for an equipment with a fair value at P50,000. e. On August 1, the company issued 10,000 shares of preference shares at P15 per share. f. On September 30, the company declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share. The share dividends were subsequently issued on October 11. g. December 1, the company declared the annual 2016 P1 dividend on preference shares and the PO.25 per share dividend on ordinary shares. These dividends are payable at the beginning of 2017. h. The company registered a net income for 2016 at P940,000.
Transcribed Image Text:PROBLEM 2: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31, 2015, statement of financial position: Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) Share premium - Ordinary shares Accumulated profits P400,000 100,000 192,000 1,200,000 The following transactions occurred during 2016: a. At the beginning of 2016, the company paid the annual 2015 P1 per share dividend on preference shares and PO.50 per share dividend on ordinary shares. These dividends had been declared on December 1, 2015.Further investigations revealed that no entry has been made to account for the declaration of the said dividends. b. On February 13, the company purchased 4,000 shares of its own outstanding ordinary shares for P80,000. c. On March 30, the company declared and issued ordinary shares split-up (1 is to 2). d. On June 19, the company reissued 2,800 treasury shares for an equipment with a fair value at P50,000. e. On August 1, the company issued 10,000 shares of preference shares at P15 per share. f. On September 30, the company declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share. The share dividends were subsequently issued on October 11. g. December 1, the company declared the annual 2016 P1 dividend on preference shares and the PO.25 per share dividend on ordinary shares. These dividends are payable at the beginning of 2017. h. The company registered a net income for 2016 at P940,000.
Expert Solution
steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS