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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Lee Company has the following capital structure. Common stock, $1 par, 100,000 shares issued and outstanding On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Lee Company would record Select one: a. A debit to Retained Earnings for $5,000. b. A credit to Dividends Payable for $70,000. c. A credit to Paid-in Capital in Excess of Par—Common Stock for $70,000. d. A credit to Retained Earnings for $75,000.
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. $5,000,000
The following shareholders’ equity accounts are included in the statement of financial position of Chicken Wings Co. on December 31, 2020.· Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding)- P6,000,000· Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding)- P3,000,000· Share premium- P3,750,000· Retained earnings- P3,500,000During 2021, Chicken Wings took part in the following transactions concerning equity.· Paid the annual 2020 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2020.· Purchased 81,000 shares of its own outstanding ordinary shares for P40 per share.· Reissued 21,000 treasury shares for land valued at P900,000.· Issued 15,000 preference shares at P105 per share.· Declared a 10% stock dividend on the outstanding ordinary shares when the shares are selling for P45 per share.· Issued…
The capital accounts of ABC Company as of yearend 2021 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20. How much is the net effect of a 10% share dividend to the company's reserves? How much is the net effect of a 30% share dividend to the company's total shareholders' equity? How much is the net effect of a 4-for-1 share split to the company's legal capital?
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ 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…
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?
The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary share capital, P20 par value, 20,000 shares outstanding Preference share capital, 5% P100 par value, non-cumulative and fully participating, 2,000 shares outstanding No dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P210,000 was declared. How much dividends will be received by the preference shares holders?
The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: Paid-in capital: Preferred stock, 7.5%, 88,000 shares at $1 par Common stock, 383,800 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Retained earnings $ 88,000 383,800 1,505,000 2,555,000 •8,845,000 (41,800) Treasury stock, at cost; 3,800 common shares Total shareholders' equity $13,335,000 During 2021, several events and transactions affected the retained earnings of Consolidated Paper.
The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary share capital, P20 par value, 20,000 shares outstanding Preference share capital, 5% P100 par value, non-cumulative and fully participating, 2,000 shares outstanding No dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P210,000 was declared. How much dividends will be received by the preference shares holders? *
The balance sheet of Consolidated Paper, Inc., Included the following shareholders' equity accounts at December 31, 2020: Paid-in capital: Preferred stock, 8.0, 93,000 shares at $1 par Common stock, 434,300 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Retained earnings Treasury stock, at cost; 4,300 common shares ar $ 93,000 434,300 1,545,000 2,595,000 9,245,000 (51,600) $13,860,700 16 Total shareholders' equity During 2021, several events and transactions affected the retained earnings of Consolidated Paper. Required: 1. Prepare the appropriate entries for these events. a. On March 3, the board of directors declared a property dividend of 265,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $772,000). The investment shares had a fair value of $3 per share and were distributed March 31 to shareholders of record March 15. b. On May 3, a 5-for-4 stock split was…
ABC Company provided the following information relating to shareholders' equity on December 31, 2020: Preference share capital, P100 par, 80,000 shares issued, 12% cumulative and fully participating, P8,000,000 Ordinary share capital, P50 par, 200,000 shares issued, P10,000,000 Share premium, P5,000,000 Retained earnings, P7,000,000 Dividends on preference shares are in arrears for two years including the current year. On December 31, 2020, ABC Company intends to pay cash dividend of P10 per share to its ordinary shareholders. What is the total amount of dividends to be declared for the preference and ordinary shareholders? (round answer to a whole number)

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