What is the total amount of dividends on preference and ordinary shares? The capital structure of THOR Company on December 31, 2020, is as follows:12% Preference shares, P200 par, 15,000 shares issued and outstanding -P3,000,000Ordinary shares, P30 par, 250,000 shares issued and outstanding – P7,500,000Share premium, preference – P900,000Share premium, ordinary – P750,000Retained earnings – P2,100,000The following selected transactions relating to shareholders' equity were noted in 2021:a. Purchased and retired 2,000 preference shares at P280 eachb. Purchased 30,000 of its own ordinary shares at P35 per sharec. Reissued 5,000 treasury shares at P38 per share.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 2021 was P1,850,000The BOD declared and paid the regular annual dividend on the preference shares and P1.50 dividend per ordinaryshare.

Formula: Total dividends = Preferred dividends + Ordinary dividends

The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares, P200 par, 15,000 shares issued and outstanding - P3,000,000 • Ordinary shares, P30 par, 250,000 shares issued and outstanding - P7,500,000 Share premium, preference - P900,000 Share premium, ordinary - P750,000 Retained earnings – P2,100,000

The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares, P200 par, 15,000 shares issued and outstanding - P3,000,000 • Ordinary shares, P30 par, 250,000 shares issued and outstanding - P7,500,000 Share premium, preference - P900,000 Share premium, ordinary - P750,000 Retained earnings – P2,100,000

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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