The capital structure of Red Ribbon Corporation on December 31,2019 follows: 12% Preference share capital, P 200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary share capital, P 50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium- Preference 1,800,000 Share Premium- Ordinary 1,500,000 Retained Earnings 2,200,000 During 2020, the following selected transactions occurred: 1. Purchased and retired 4,000 preference shares at P 280 per share. 2. Purchased 8,000 shares of its own ordinary share at P 80 per share. 3. A 2-for-I share split on the ordinary share was approved by the shareholders, thereby reducing the par value to P 25. 4. Reissued 6,000 treasury shares at P 45 each. 1. Shareholder's donated 4,000 ordinary shares when the market price was P 46 per share. 2. Two thousand of the donated shares were issued for P 48 per share. 3. Declared the annual dividends on the preference share and PI per share dividend on ordinary shar. 4. The profit for 2020 was P 2,000,000. REQUIRED: Determine the following at December 31,2020: a.) Number of preference shares issued and outstanding b.) Number of ordinary shares issued and outstanding c.) Cost of remaining treasury shares ( acquired by purchase) d.) The amount of total dividends declared during the year. e.) Total shareholder's equity
The capital structure of Red Ribbon Corporation on December 31,2019 follows: 12% Preference share capital, P 200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary share capital, P 50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium- Preference 1,800,000 Share Premium- Ordinary 1,500,000 Retained Earnings 2,200,000 During 2020, the following selected transactions occurred: 1. Purchased and retired 4,000 preference shares at P 280 per share. 2. Purchased 8,000 shares of its own ordinary share at P 80 per share. 3. A 2-for-I share split on the ordinary share was approved by the shareholders, thereby reducing the par value to P 25. 4. Reissued 6,000 treasury shares at P 45 each. 1. Shareholder's donated 4,000 ordinary shares when the market price was P 46 per share. 2. Two thousand of the donated shares were issued for P 48 per share. 3. Declared the annual dividends on the preference share and PI per share dividend on ordinary shar. 4. The profit for 2020 was P 2,000,000. REQUIRED: Determine the following at December 31,2020: a.) Number of preference shares issued and outstanding b.) Number of ordinary shares issued and outstanding c.) Cost of remaining treasury shares ( acquired by purchase) d.) The amount of total dividends declared during the year. e.) Total shareholder's equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The capital structure of Red Ribbon Corporation on December 31,2019 follows:
12% Preference share capital, P 200 par, 30,000 shares issued and outstanding
P 6,000,000
Ordinary share capital, P 50 par, 100,000 shares issued and outstanding
5,000,000
Share Premium- Preference
1,800,000
Share Premium- Ordinary
1,500,000
Retained Earnings
2,200,000
During 2020, the following selected transactions occurred:
1. Purchased and retired 4,000 preference shares at P 280 per share.
2. Purchased 8,000 shares of its own ordinary share at P 80 per share.
3. A 2-for-l share split on the ordinary share was approved by the shareholders, thereby reducing the par
value to P 25.
4. Reissued 6,000 treasury shares at P 45 each.
1. Shareholder's donated 4,000 ordinary shares when the market price was P 46 per share.
2. Two thousand of the donated shares were issued for P 48 per share.
3. Declared the annual dividends on the preference share and PI per share dividend on ordinary shar.
4. The profit for 2020 was P 2,000,000.
REQUIRED: Determine the following at December 31,2020:
a.) Number of preference shares issued and outstanding
b.) Number of ordinary shares issued and outstanding
c.) Cost of remaining treasury shares ( acquired by purchase)
d.) The amount of total dividends declared during the year.
e.) Total shareholder's equity
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