Question 9 of 19The records of Alamko Corporation showed the following data:Ordinary share capital, par P10,authorised 1,000,000 shares,issued 600,0006,000,000Share Premium300,000Retained Earnings3,000,000The Board of Directors declared a 20% cash dividend. The entry to record the payment isSelect the correct response:Retained Earnings600,000Dividends Payable600,000Dividends Payable1,200,000Cash1,200,000Dividends Payable600,000Cash600,000Retained Earnings1,200,000Dividends Payable1,200,000

A dividend is a share of profits and retained earnings that a company pays out to its shareholders.…

Answered: Question 9 of 19 The records of Alamko…

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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Problem 6: Treasury Shares year 20x1: Valientes Corporation reported the shareholders. Equity at the beginning of the Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings 2,250,000 1,500,000 2,000,000 During the year, the entity had the following treasury shares transactions: Acquired 10,000 treasury shares for P500,000. Sold 5,000 treasury shares at P60 per share - Sold 2,000 treasury shares at P45 per share. Required: a. Prepare the journal entries b. Prepare the shareholders' equity at the end of the year
Problem 5. Presented below is the Shareholders' Equity of Iligan Water Spring Resort Corporation: Authorized to issue 5,000 shares at par value of P100. Issued 4,000 shares of which 100 shares are in the treasury 400,000 10,000 180,000 10,000 Share Premium Retained Earnings (of which of P100,000 represents profit) Less: Treasury Shares at Cost Required: 1. Compute Book Value Per Share 2. Compute Basic Earnings Per Share
Question 10 of 19 Fill in the blanks: The following is the abstract of the shareholders' equity of Shami Corporation before the declaration of cash dividends. 15% Preference share capital, par P50, 40,000 shares ail issued 2,000,000 and outstanding Ordinary Share Capital, P25 par, 100,000 shares all issued and outstanding 1,000,000 Retained Earnings 6,000,000 The Board declared dividends of P3,000,000. No dividends were distributed in the past 2 years. Direction: Determine how much dividends per share the preference and ordinary shareholders will receive if the preference shares is cumulative and participating. Note: Round-off your answer up to 2 decimal places. If your answer is 12.3, write 12.30; if your answer is 12, write 12.00 1. Dividend per share - PS: 2. Dividend per share - OS: < Previous
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Problem 4 (Allocation of Cash Dividends to Preference and Ordinary Shareholders) The Company has the same capital structure (except for retained earnings) for the past five year, see details below: 6% Preference Share Capital, 80,000 shares issued and outstanding, P 50 par P4,000,000 Ordinary Share Capital, 200,000 shares issued and outstanding, P 30 par 6,000,000 Retained Earnings 5,000,000 No dividends were paid prior to 2020 for two years. On December 10, 2020, the Company declared P 1,500,000 as cash dividends to shareholders of record of December 21, 2020, payable on January 5, 2021. Requirements: Prepare all the necessary journal entries to record the dividend transactions. Allocate the dividends between ordinary shareholders and preference shareholders if: Case A. Preference share capital is NON-CUMULATIVE and…
Problem 4 (Allocation of Cash Dividends to Preference and Ordinary Shareholders) The Company has the same capital structure (except for retained earnings) for the past five year, see details below: 6% Preference Share Capital, 80,000 shares issued and outstanding, P 50 par P4,000,000 Ordinary Share Capital, 200,000 shares issued and outstanding, P 30 par 6,000,000 Retained Earnings 5,000,000 No dividends were paid prior to 2020 for two years. On December 10, 2020, the Company declared P 1,500,000 as cash dividends to shareholders of record of December 21, 2020, payable on January 5, 2021. Requirements: Prepare all the necessary journal entries to record the dividend transactions. Allocate the dividends between ordinary shareholders and preference shareholders if: Case A. Preference share capital is NON-CUMULATIVE and…
QUESTION TWO B plc has the following capital structure: K’000Ordinary shares – K0.40 5,000 Retained earnings 500 10% Preference shares at K1 1,500 10% K100 redeemable debentures 3,000 Total funds employed 10,000 The market price of the preference shares is 80n ex-div, the ordinary shares are quoted at K1.62 cum-div per share. Debenture stock is quoted at K97.5 ex-interest per K100 nominal and will be redeemable at par in exactly 7 years’ time. B plc has just declared dividend of K1,500,000 in total for all issued ordinary shares. The dividend growth rate is 4% per year forever. Company tax is 30% per year. The market rate of return is 12% and the company has an equity beta value of 1.25 Required:a) Calculate WACC based on market values. b) Discuss the implications of using a wrong WACC value in project appraisal and comment on the current level of capital gearing.
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QUESTION 2 Huxley Company has 264277 shares of common stock authorized 153543 Issued and 71672 shares of treasury stock The company's board of directors declares a dividend of $0.60 per share of common stock. What is the total amount of the dividend that will be paid? Round your answer to the nearest dollar
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