EXERCISE I 3The capital structure of Red Ribbon Corporation on December 31,2019 follows:12% Preference share capital, P 200 par, 30,000 shares issued and outstandingP 6,000,000Ordinary share capital, P 50 par, 100,000 shares issued and outstanding5,000,000Share Premium- Preference1,800,000Share Premium- Ordinary1,500,000Retained Earnings2,200,000During 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 parvalue to P 25.4. Reissued 6,000 treasury shares at P 45 each. I. Shareholder's donated 4,000 ordinary shares when the market price was P 46pershare.2. Two thousand of the donated shares were issued for P 48 share.per3. 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 outstandingb.) Number of ordinary shares issued and outstandingc.) Cost of remaining treasury shares ( acquired by purchase)d.) The amount of total dividends declared during the year.e.) Total shareholder's equity

Preference shares are shares of a company's stock with dividends that are paid out to shareholders…

Answered: The capital structure of Red Ribbon…

Cornerstones of Financial Accounting

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Chapter9: Long-term Liabilities

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Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...

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Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?
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…
D. 6. Using the data below, How many shares of preference share capital were issued during 2019? * The shareholders' equity of Bamboo Corporation at the end of 2019 and 2018 is as follows: Preference share capital, P 100 par Ordinary share capital, P 20 par Preference share premium Ordinary share premium Retained earnings 2019 P 1,000,000 2,000,000 16,000 4,350,000 2018 P 600,000 1,800,000 3,750,000 80,000 180,000 Your answer 7. Using data in no. 6, at what average price was the preference share capital issued during 2019? * Your answer 8. Using data in no. 6, assuming no other transactions affected the Retained Earnings except for the result of the corporation's operations, how much is the 2019 profit (net loss)? * Your answer
The capital structure of Thor Company on December 31, 2019 follows: 12% Preference share capital, P200 par, 15,000 shares issued and outstanding P3,000,000 Ordinary share capital, P30 par, 250,000 shares issued and outstanding 7,500,000 Share premium –preference 900,000 Share premium –ordinary 750,000 Retained earnings 2,100,000 The following selected transactions relating to shareholders’ equity were noted in 2020: Purchased and retired 2,000 preference shares at P280 each. Purchased 30,000 of its own ordinary shares at P35 per share. Reissued 5,000 treasury shares at P38 each. Shareholders donated to the company 20,000 ordinary shares when the market price is P36 per share. One half of the donated shares were issued for P39 each. Profit for 2020 was P1,850,000. The board of directors declared and paid the regular annual dividend on the preference share and P1.50 per ordinary share dividend. How much is the total shareholders’ equity on December 31, 2020? A. P14,250,000…
The capital structure of Park Do Ha Company on December 31, 2019 follows: 12% Preference share capital, P200 par, 15,000 shares issued and outstanding Ordinary share capital, P30 par, 250,000 shares issued and outstanding Share premium - preference Share premium - ordinary Retained earnings P3,000,000 7,500,000 900,000 750,000 2,100,000 The following selected transactions relating to shareholders' equity were noted in 2020: a. Purchased and retired 2,000 preference shares at P280 each. b. Purchased 30,000 of its own ordinary shares at P35 per share. G. Reissued 5,000 treasury shares at P38 each. d. Shareholders donated to the company 20,000 ordinary shares when the market price is P36 per share. e. One half of the donated shares were issued for P39 each. f. Profit for 2020 was P1,850,000. g. The board of directors declared and paid the regular annual dividend on the preference share and P1.50 per ordinary share dividend. How much is the total shareholders' equity on December 31, 2020?…
#17The following data are presented for Caroline company for the year ended December 31, 2020.Preference share capital authorized, 100 par, P15,000,000, Ordinary share capital authorized,10 par, P6,000,000, Unissued preference share capital, P5,400,000, Unissued ordinary sharecapital, P3,000,000, Subscriptions receivable, ordinary, P540,000, Subscriptions receivable,preference, P570,000, Preference share capital subscribed, P900,000, Ordinary share capitalsubscribed, P660,000, Treasury preference shares (700 shares at cost), P2,040,000, Sharepremium, P2,550,000, Retained earnings, P6,000,000. What is the amount of shareholder’sequity on December 31, 2018? 19,560,000 pls provide solution for this answer
Pat Company reported the following information on December 31, 2020. Determine the legal capital: * P230 000 80 500 525.000 275,000 5.000 Preference Share, P100 par Share Premium - Preference Ordinary Share, P15 par Share Premium- Ordinary Subscribed Ordinary Share Retained Earnings Notes Payable Subscription receivable- Ordinary 190,000 400,000 40,000 Your answer This is a required question
D. The stockholders' equity section of SKSU Corporation's balance sheet on December 31, 2019: Common stock, P10 par value; authorized 1,500,000 shares; issued and outstanding 900,000 shares Additional paid-in capital Retained earnings Total stockholders' equity P9,000,000 750,000 2,700,000 P12,450,000 Transactions during 2020 and other information relating to the stockholders' equity accounts were as follows: On January 26, SKSU reacquired 75,000 shares of its common stock for P11 per share. On April 4, SKSU sold 45,000 shares of its treasury stock for P14 per share. On June 1, SKSU declared a cash dividend of P0.95 per share, payable on July 15, 2020 to stockholders of record on July 1, 2020. On August 15, each stockholder was issued one stock right for each share held to purchase two additional shares of stock for P12 per share. The rights expire on October 31, 2020. On September 30, 150,000 stock rights were exercised when the market value of the stock was P12.50 per share. On…
HHH Company provided for the following shareholders’ equity on December 31, 2020: Share capital, P100 5,000,000 Share premium 1,000,000 Retained earnings unappropriated 1,500,000 Retained earnings appropriated for contingencies 500,000 Revaluation surplus 800,000 8,800,000 Compute for the book value per share on December 31, 2020
Exercise 5. Various share capital transactions Joshua Company has two classes of share capital outstanding: 10%, P50 par preference share capital and P10 par ordinary share capital. At December 31, 2019, the following accounts were included in the shareholder's equity: Preference Share Capital, 100,000 shares Ordinary Share Capital, 1,000,000 shares Preference Share Premium P5,000,000 Ordinary Share Premium P10,000,000 Retained Earnings P4,500,000 The following transactions have affected the shareholder's equity of the company during the year 2020: Jan. 1 Issued 15,000 preference shares at P60 per share. Feb.1 Issued 25,000 ordinary shares at P25 per share. July 1 Reacquired 20,000 ordinary shares at P14 per share. Oct. 31 Reissued 15,000 treasury shares at P16 per share. Dec.31 Profit for the year is P2,500,000. Prepare the journal entries of the foregoing transactions and prepare the Shareholder's equity section of the Company as of December 31, 2020.
Question2 Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019: Common shares, unlimited authorized shares, 480,000 shares issued and outstanding Retained earnings $6,800,000 3,600,000 During 2020, the following selected transactions occurred: Repurchased and retired 200,000 common shares at $9.20 per share Repurchased and retired 125,000 common shares at $10.75 per share Issued 50,000 common shares at $12 per share Repurchased and retired 100,000 common shares at $20.00 per share Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $7.50, $6.80, and $7.20 respectively. Apr. June 1 Aug Nov. Dec. 20 Distributed the share dividend declared December 1. 31 Closed the credit balance of $1,620,000 in the Income Summary account. Required: a. Journalize the transactions above. b. Prepare the shareholders' equity section at…
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 fully participating, compute for the book value per ordinary share. 2. Assuming that the preference share is cumulative and fully participating, compute for the book value per preference share.

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