The Following information was lifted from the shareholders equity section of ABC Corp:Share Capital - 10P par value, 280K sharesSubscribed CapitalSubscription ReceivableShare PremiumRetained EarningsTreasury Share (at cost, P6/sh)2,800,000940,000530,0001,025,0001,700,000240,000On June 9, 2020, the BOD declared a 3P per share cash div of record on June 25, 2020 andpayable on July 6, 2020.Compute for the Cash dividend payable and RE.

Cash dividend: It is a part of the company's profit that it shares with its shareholders. It is…

Answered: The Following information was lifted…

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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Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What amount should be reported as retained earnings on December 31, 2020? - What is the dividend payable on December 31, 2020?
Shaina company reported the following shareholders’ equity on December 31, 2019:Preference share capital, 10% cumulative and non participating, P100 par, 10,000 shares P1,000,000Ordinary share capital, P100 par, 20,000 shares 2,000,000Subscribed ordinary share capital, 10,000 shares 1,000,000Subscriptions receivable 250,000Share Premium 500,000Retained Earnings 1,200,000Treasury ordinary shares, 5,000 at cost 400,000 The preference dividends are in arrears for 2017, 2018 and 2019. a. What is the book value per ordinary share? b. What is the book value per preference share?
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Part of the Financial Position of Candy Inc. as of Dec. 31, 2019 shows the following: Accounts Payable Bonds payable Ordinary Share Capital par) 8% Preference Share Capital (P200 par) 10% Preference Share Capital(P200 par) Р 56,000 500,000 550,000 (P100 300,000 200,000 25,000 50,000 70,000 230,000 (21,000) P 1,960,000 Share Premium – ordinary Share Premium – Preference Appropriations reserve Accumulated Profits Treasury shares - ordinary (P105/sh) Total Equities Dividends are in arrears for two years. The 10% preference share capital is cumulative while the 8% preference share capital is participating up to 12%. If Candy Inc. is liquidated, how much would be received by Mr. Gwapo who holds 500 ordinary shares and 100 shares of 10% preference shares?
Integrity Company, a newly formed company, had the following shares issued and outstanding as of April 1, 2022: Ordinary share, P20 par (20,000 shares originally issued for P60 per share) Preference share, P50 par (6,000 shares originally issued for P100 per share) How much is the Ordinary Share Capital, Preference Share Capital, and Share Premium, respectively? a. P400,000; P300,000; and P1,100,000 b. P1,200,000; P300,000; and P300,000 c. P400,000; P600,000; and P800,000 d. P1,200,000; P600,000; and P0
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
ABC Corporation provided you the following information on January 01, 2021: Share capital, P10 par P4,000,000 Share premium 800,000 Retained earnings 3,500,000 Share transactions for the year 2021: Feb 10 – Declared 10% share dividend. Market value of each share – P20 March 10 – Issued and distributed share dividends declared on February 10 June 15 - Declared 20% share dividend. Market value of each share – P25 July 01 - Issued and distributed share dividends declared on June 15 December 03 – Declared cash dividend of P2 per share Retained earnings for the year 2021 would decrease by: a.3,616,000 b.2,336,000 c.3,616,000 d.1,056,000
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
The capital accounts of ABC Company as of yearend 2021 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20. How much is the net effect of a 10% share dividend to the company's reserves? How much is the net effect of a 30% share dividend to the company's total shareholders' equity? How much is the net effect of a 4-for-1 share split to the company's legal capital?
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 200 million shares at $1 par $ 200 Paid-in capital—excess of par 1,600 Paid-in capital—share repurchase 2 Retained earnings 1,000 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. On July 9, 2021, the corporation sold 3 million shares at $14 per share. On November 14, 2023, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to…
Blossom SA reported the following balances at December 31, 2019: share capital-ordinary €530,000, share premium-ordinary €115,000, and retained earnings €310,000. During 2020, the following transactions affected equity. 1. Issued preference shares with a par value of €140,000 for €247,000. 2. Purchased treasury shares (ordinary) for €45,000. Earned net income of €174,000. Declared and paid cash dividends of €52,000 3. 4. Prepare the equity section of Blossom SA's December 31, 2020, statement of financial position.
3. Akea Corp., reports this journal entry on May 15, 2020: Cash 75,000 Ordinary Share Capital 63,000 Paid in Capital in Excess of Par 12,000 The explanation reads. “Issued ordinary share capital for P50 per share”. Compute the no. of shares issued for this transaction?

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