The Royal Corporation reported profit for 2012 of P177,500. Royal began the year with 100,000 shares of P5 par value ordinary shares outstanding and 2,500 shares of P100 par value 8% preference shares outstanding. On October 1, Royal sold 10,000 shares of ordinary shares for P6 per share. Royal paid. dividends to both the ordinary and preference shareholders in December. What is the weighted average number of ordinary shares to be used in the computation of basic earnings per share for 2012?

The Royal Corporation reported profit for 2012 of P177,500. Royal began the year with 100,000 shares of P5 par value ordinary shares outstanding and 2,500 shares of P100 par value 8% preference shares outstanding. On October 1, Royal sold 10,000 shares of ordinary shares for P6 per share. Royal paid. dividends to both the ordinary and preference shareholders in December. What is the weighted average number of ordinary shares to be used in the computation of basic earnings per share for 2012?

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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What is the weighted average number of ordinary shares to be

used in the computation of basic earnings per share for 2012?

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

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