Rock Company reported the following shareholders equity on December 31, 2022: Share capital, P50 par value 3,000,000 Share premium 600,000 Retained earnings 4,200,000 A 15% share dividend was declared and distributed on December 31, 2022 when entity’s share was selling at P65. What amount should be reported as share capital outstanding? Group of answer choices 3,450,000 3,585,000 3,615,000 4,185,000

Rock Company reported the following shareholders equity on December 31, 2022: Share capital, P50 par value 3,000,000 Share premium 600,000 Retained earnings 4,200,000 A 15% share dividend was declared and distributed on December 31, 2022 when entity’s share was selling at P65. What amount should be reported as share capital outstanding? Group of answer choices 3,450,000 3,585,000 3,615,000 4,185,000

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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Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
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.
2. An entity showed the following data:Share capital, par value P10, 25,000 shares issued 250,000Share Premium 50,000Retained Earnings 150,000Market value of share on declaration date 20Market value of share on distribution date 40a. If a 10% share dividend will be declared, what amount of retained earnings will be capitalized? Prepare the entries on declaration and distribution date.b. If a 25% share dividend will be declared, what amount will be charged to retained earnings? Prepare the entries on declaration and distribution date
1. Determine the total retained earnings as of December 31, 2020. choices: 780,000 858,000 580,500 730,500 2. Determine the total share premium as of December 31, 2020. 8,396,950 8,419,450 8,402,800 8,219,650
Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.
What is the balance as of Dec 31, 2022 of Share capital-ordinary and Share Capital-preference.
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is cumulative and nonparticipating, compute for the book valueper ordinary share. 2. Assuming that the preference share is cumulative and nonparticipating, compute for the book value per preference share.
1. Using the information provided below, what is the share premium balance on December 31, 2021? The following are Lyca Company's equity accounts at December 31, 2020: • Ordinary share capital, par value P10; authorized 200,000 shares; issued and outstanding 120,000 shares. ............... P1,200,000 • Share premium........ ............... 180,000 • Retained earnings................ .............................. 720,000 . Lyca Company uses the cost method of accounting for treasury shares. The following transactions occurred in 2021: - Acquired 8,000 ordinary shares for P144,000. - Sold 6,500 treasury shares at P20 per share - Retired the remaining treasury shares a. P117,000 b. P168,000 c. P181,000 d. P193,000
PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is noncumulative and nonparticipating, compute for the book value per ordinary share. 2. Assuming that the preference share is noncumulative and nonparticipating, compute for the book value per preference share.
7. Charlotte Company provided the following information in relation to share capital: January 1, 2020 April 1, 2020 October 1, 2020 Shares outstanding Shares issued 1,500,000 240,000 120,000 Treasury shares purchased Issued a 100% share dividend December 1, 2020 What is the number of weighted average shares? 8. Daisy Company had 350,000 ordinary shares outstanding on January 1, 2020. During 2020 and 2021, the following transactions took place. Sold 33,600 shares Issued a 20 percent stock dividend Sold 22,400 shares Purchased 21,000 shares to be held in treasury 2020 March I July I October 1 December 1 3 for 1 share split Sold 84,000 shares 2021 June I September 1 What is the weighted average number of shares for 2020 to be used in the earnings per share computation for comparative financial statements at the end of 2021? b. What is the weighted number of shares for 2021 used in the earnings per share computation for comparative financial statement at the end of 2021? a.
1. see image for the question and statmentchoices: a. 176,000b. 263,000c. 204,000d. 321,000