Summit of Hope has an authorized capital of 10,000 shares of P100 par, 8% cumulative preference share and 20,000 shares of P100 par Ordinary Shares. The equity balances at December 31, 20x5 are as follows: Cumulative Preferred share P 500,000 capital Ordinary share capital 1,100,000 Share premium 200,000 Retained Earnings 260,000 Treasury Stock, ordinary- 1,000 (150,000) shares Dividends on preferred shares are in arrears for 20x4 and 20x5. 1. Compute for the Book Value of the Ordinary Shares per share 2. Compute for the Book Value of the Preferred Stock per share

Summit of Hope has an authorized capital of 10,000 shares of P100 par, 8% cumulative preference share and 20,000 shares of P100 par Ordinary Shares. The equity balances at December 31, 20x5 are as follows: Cumulative Preferred share P 500,000 capital Ordinary share capital 1,100,000 Share premium 200,000 Retained Earnings 260,000 Treasury Stock, ordinary- 1,000 (150,000) shares Dividends on preferred shares are in arrears for 20x4 and 20x5. 1. Compute for the Book Value of the Ordinary Shares per share 2. Compute for the Book Value of the Preferred Stock per share

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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The following are data pertaining to ABC Corporation: Ordinary share Capital, with par value of P50, 18,500 issued shares 925.000 Additional Paid in Capital 125,000 Retained Earnings 4,500,000 Shareholder's Equity 5,550,000 The following transactions took place: Aug 10-Reacquired 6,000 ordinary shares for treasury at P60 per share Aug 12- 2,500 treasury shares were sold at P62 per share Aug 20- Another 1,000 treasury shares were sold at P55 per share Aug 31- 1,000 treasury shares were retired Required: Journalize each transaction and compute for the new balance of Shareholder's Equity.
1. At the current year end, Spurs Corporation declared 4,000 ordinary shares of P 100 par value in connection with a share capital dividend. The market value per share on the date of declaration was P 150. The shareholder’s equity accounts immediately before issuance of the share capital dividend shares were as follows: Ordinary share capital, P 100 par,50,000 shares authorized, 20,000 shares outstanding - P 2,000,000 Ordinary Share premium -P3,000,000 Retained earnings -P 1,500,000What amount should be reported as retained earnings immediately after the share capital dividend?a. P2,100,000b. P900,000c. P1,100,000d. P1,500,000
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) $8,000,000 Paid-In Capital in Excess of Par—Preferred Stock 440,000 Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) 20,000,000 Paid-In Capital in Excess of Par—Common Stock 2,280,000 Retained Earnings 115,400,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: a. Issued 220,000 shares of common stock at $14, receiving cash. b. Issued 12,000 shares of preferred 2% stock at $110. c. Purchased 160,000 shares of treasury common for $10 per share. d. Sold 105,000 shares of treasury common for $16 per share. e. Sold 40,000 shares of treasury common for $8 per share. f. Declared cash dividends of $2.00 per share on preferred stock and $0.08 per share on…
The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts: Contributed Capital Preferred Stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock) Additional Paid-In Capital, Preferred Common Stock (no-par; authorized 20,000 shares, issued and outstanding 6,300 shares) Retained Earnings Treasury Stock, 1,000 Preferred shares at cost $110,000 15,950 648,900 33,000 (9,650) Assume that no shares of treasury stock have been sold in the past. Required: Complete the following statements. (Decreases should be indicated by a minus sign. Round per share to 2 decimal places.) 1. The number of shares of preferred stock issued was 2. The number of shares of preferred stock outstanding was 3. The average issue price of the preferred stock was per share 4. The average issue price of the common stock was 5. The treasury stock transaction increased (decreased) stockholders' equity by 6. The…
Sneed Corporation issues 11,700 shares of $55 par preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $702,000 and a credit or credits to a.Preferred Stock for $643,500 and Retained Earnings for $58,500. b.Preferred Stock for $643,500 and Paid-In Capital in Excess of Par—Preferred Stock for $58,500. c.Paid-In Capital from Preferred Stock for $702,000. d.Preferred Stock for $702,000.
Shown below is information relating to the stockholders' equity of Grant Corporation at December 31, Year 1: 6.5% cumulative preferred stock, $100 par value; authorized, 18,000 shares; issued and outstanding, 9,000 shares Common stock, $4 par value; authorized, 340,000 shares; issued and outstanding, 204,000 shares Additional paid-in capital: preferred stock Additional paid-in capital: common stock Retained earnings Dividends have been declared and paid for Year 1. The average issue price per share of Grant's preferred stock was: Multiple Choice O $52.50. $100.00. $105.00. $ 900,000 $ 816,000 $ 45,000 $ 1,500,000 $ 920,000
The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to Oa. Preferred Stock for $500,000 and Paid-In Capital in Excess of Par-Preferred Stock for $250,000 Ob. Preferred Stock for $750,000 Oc. Preferred Stock for $500,000 and Retained Earnings for $250,000 Od. Paid-In Capital from Preferred Stock for $750,000
The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, Year 3, is as follows: Shareholders’ Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 34,500 shares $3,450,000 Common stock, $5 par value; authorized, 2,000,000 shares; issued, 405,000 shares 2,025,000 Paid-in capital in excess of par—preferred 97,000 Paid-in capital in excess of par—common 897,000 Retained earnings 3,200,000 $9,669,000 The following events occurred during Year 4: Jan. 5 10,000 shares of authorized and unissued common stock were sold for $7 per share. 16 10,000 shares of authorized and unissued preferred stock were sold for $108 per share. Apr. 1 76,000 shares of common stock were repurchased for the treasury at a price of $16 per share. Superior uses the cost method to account for treasury stock. Sept. 1 3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of…
At December 31, the stockholders' equity section shows: Ordinary share capital, P5 par value; 1,320,000 shares issued and 1,200,000 shares outstanding P6,600,000 Share Premium P1,400,000 Retained earnings P500,000 Treasury shares, (120,000 shares) P700,000 Total shareholders' equity P7,800,000. How much is the book value per share?
The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $62 per share. The entry to record the transaction will consist of a debit to Cash for $620,000 and a credit or credits to a. Preferred Stock for $620,000. Ob. Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $120,000. Oc. Preferred Stock for $500,000 and Retained Earnings for $120,000. Od. Paid-in Capital from Preferred Stock for $620,000.