PROBLEM 29 Barcelona Company owns 20,000 shares of ABC Corporation, representing 10% ownership. Barcelona received a share dividend of 2,000 on September 1, 2020, when the carrying value per on ABC Corporation's books was P30 per share, and the market price is P33 per share. ABC Corporation paid a cash dividend of P10 per share on October 31, 2020, declared on September 30, 2020, of record October 15, 2020. Requirements: 1 How much is the dividend income at the end of 2020? 2 Prepare the necessary joumal entries to record September 1, 2020, and October 31, 2020.

PROBLEM 29 Barcelona Company owns 20,000 shares of ABC Corporation, representing 10% ownership. Barcelona received a share dividend of 2,000 on September 1, 2020, when the carrying value per on ABC Corporation's books was P30 per share, and the market price is P33 per share. ABC Corporation paid a cash dividend of P10 per share on October 31, 2020, declared on September 30, 2020, of record October 15, 2020. Requirements: 1 How much is the dividend income at the end of 2020? 2 Prepare the necessary joumal entries to record September 1, 2020, and October 31, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Exercise 4 – 7On January 1, 2020, Levesque Co. purchased 500,000 ordinary shares of Rowland Co. at ₱14 per share, representing a 25% ownership in Rowland. This allowed Levesque to exercise significant control over Rowland. Rowland declared and paid dividends of ₱1 and ₱2 in 2020 and 2021, respectively. At the end of 2020 and 2021, Rowland’s shares were trading at ₱15 and ₱17 per share. Rowland’s net income in 2020 and 2021 was ₱2,400,000 and ₱3,200,000, respectively.1. Determine the investment income recognized by Levesque in 2020 and 2021.2. Determine the carrying amount of Levesque’s investment on December 31, 2020, and December 31, 2021.
Question 40 On July 1, 2022, BFAR Corp. declared and issued 25% share dividend to its ordinary shareholders. Before the issuance of the said shares, the company had 28,000 shares of P13 par value ordinary shares that were both issued and outstanding. The fair market value of each share is P20. How much was credited to the Ordinary Share Capital upon issuance of the share dividend?
Review 17-9 Parent Corp. owns 40% of Sub Corp. In the current year, Parent has gross income of $43,000 and allowable deductions of $30,000 before considering any dividends received deduction (DRD). Included in the $43,000 gross income is $8,000 of dividends from Sub. What is the maximum DRD available to Parent? a. $4,000 b. $5,200 c. $8,000 d. $8,450
QUESTION 12
Question 6 Melay company had 150,000 equity shares in issue on January 1, 20B. On July 1, 20B it issued 30,000 new shares by way of a 1 for 5 bonus. On October 1, 20B, the entity issued 42,000 new shares for cash at full market price. When calculating basic earnings per share, how many shares should be divided into the profit after tax? CHOICES: 150,000 175,500 222,000 190,500
QUESTION 35 Caren Ltd has earnings of $200,000, has 150,000 shares on issue, and the shares are priced at $10 per share. Denise Ltd has earnings of $100,000, has 100,000 shares on issue, and the shares are priced at $5 per share. What will the price earnings ratio of the combined entity be if Caren Ltd issues one of its share for every two Denise Ltd shares?
Question 12 of 14 View Policies Current Attempt in Progress Blue Corporation earned net income of $402.040 in 2025 and had 95,000 shares of common stock outstanding throughout the year. Also outstanding all year was $850,000 of 5% bonds, which are convertible into 16,000 shares of common. Blue's tax rate is 30 percent. Compute Blue's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55) Diluted earnings per share < eTextbook and Media Save for Later $
Norway Company investments to Latvia Company are: Preference share capital 15% Ordinary share capital 40% Latvia Company's share capital outstanding on December 31 2021. is as follows: 10% Cumulative preference share capital P2,000.000 Ordinary share capital 7.000.000 Latvia Company reported a net income of P5.000.000 for the year ended Doccember 31. 2021. How much is the investment income for December 31. 2021?
Problem 3-12 On January 1, 2019, an entity granted to a senior executive 20,000 share options, conditional upon the executive’s remaining in the entity’s employ until December 31, 2021. The par value per share is P50. The exercise price is P100. However, the exercise drops to P80 if the entity’s earnings increase by at least an average of 10% per year over the three-year period. On grant date, the entity estimates that the fair value of the share option is P30 if the exercise price is P80. If the exercise price is P100, the fair value of the share option is P25. During 2019 and 2020, the earnings increased by 12% and 11% respectively. However, during 2021, the earnings increased only by 4%. Required: A. Prepare journal entries from 2019 to 2021
PROBLEM 31 Çobarrubias Corporation had the following investment at FVTPL at the beginning of the current year: Fair Value ABC Corporation, 10,000 shares (originally cost P1,000,000) JKL Company, 20,000 shares (originally cost P500,000) -P1,200,000 450,000 During the current year, the following transactions occurred: Feb. 28 ABC Corporation declared a 3-for-2 share split. Apr 31 JKL Company declared a 20% share dividend. The market value of JKL Company on this date is P3.00. June 30 Sold 5,000 shares of JKL Company for P100,000, less brokers fee of P1,000. July 31 Sold 5,000 shares of ABC Corporation for P135. Sept 30 Received share rights to purchase one share of ABC Corporation for P100 per share. The companyshould tender five rights for everyshare acquired. The market price of ABC Corporation shares on this date is P140. Oct. 31 Exercise all the share rights from ABC Corporation. Dec. 31 The market value of the portfolio: ABC Corporation - P155 per share JKL Company- P36 per share…
Problem 4 (Adapted)The shareholders equity of Joyce corporation on Dec. 31, 2018 shows the following account balances:10% preference share, 10,000 shares, 100 par 1,000,00012% preference share, 12,000 shares, 100 par 1,200,000Ordinary share, 20,000 shares, 40 par 800,000 Share premium 640,000Accumulated profits 960,000The 10% preference share is cumulative and fully participating, while the 12% preference share is non-cumulative and fully participating. The last payment of dividends was on Dec. 31, 2016. What is the book value per share of ordinary shares?
Task 6. ANGEL Company plans to acquire a processing plant for P40 million. To finance the acquisition, the business will issue 6% preference shares with a par value of P100 per share. The selling price of the preference shares is P150. the business is subject to a 30% income tax rate, and has declared dividends to preference shares of P6 the previous year. Required: Compute the cost of preference share.