The shareholders’ equity accounts of a corporation on December 31, 200G show the following: 6% Cumulative Preference Share Capital, P 100 par P 1,000,000; Ordinary Share Capital, P 50 par 3,000,000; Retained Earnings 700,000. What is the book value for each ordinary share Choices; 50 60 65 65.83

The shareholders’ equity accounts of a corporation on December 31, 200G show the following: 6% Cumulative Preference Share Capital, P 100 par P 1,000,000; Ordinary Share Capital, P 50 par 3,000,000; Retained Earnings 700,000. What is the book value for each ordinary share Choices; 50 60 65 65.83

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the par value per share?

A: Par value of share is the value of share quoted in the organization legal documents.

Q: 38.The shareholders’ equity of Nicko Corporation is presented below: 10% Preference Share, 2,000…

A: The preference shares get the dividend before any dividend paid to ordinary shareholders.

Q: 37.The shareholders’ equity of Nicko Corporation is presented below: 10% Preference Share, 2,000…

A: Dividends are the share or part of profits which is being distributed to the shareholders of the…

Q: Compute for the book value per share on preference and ordinary share under each of the following…

A: The underlying value of the financial assets in the books of accounts of the company is known as…

Q: 43.At December 31, the Shareholders’ Equity section shows: Ordinary Share, P 5 par value, 1,320,000…

A: The book value per share is calculated as shareholders equity divided by outstanding ordinary…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: In accounting, the value of an asset as it appears on a balance sheet and a measurement of a…

Q: The shareholders’ equity of Seven Corporation is presented below: 10% Preference Share, 2,000…

A: Ordinary share is one of the kinds of share. These are usually the entity's decision makers as these…

Q: The shareholder' equity of M Corp on Dec 31, 2021 follows: 10% Preference share capital P100 par,…

A: The dividend in arrears are paid to only cumulative preference shareholders. The book value per…

Q: A companys share capital consists of 3 million ordinary shares of RO 1 each, issued at a premium of…

A: Ordinary shares capital = No. of rdinary shares issued x Par value per share = 3,000,000 shares x RO…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: SOLUTION- NOTE= DIVIDEND ARREARS OF 2 YEARS DOES NOT EFFECT RETAINED EARNING OF THIS YEAR…

Q: SCARLET Corporation has an authorized capital of 10,000 shares of $100 par, 8% cumulative preference…

A: Formula: Book value per ordinary share = Total Equity available to Ordinary shareholders / No. of…

Q: 33.The shareholders’ equity of Seven Corporation is presented below: 10% Preference Share, 2,000…

A: The shareholders equity section includes all the money related to shareholders.

Q: The shareholders equity section of Batangas Corporation Statement of Financial Position at the end…

A: Issued shares are those shares which are sold or held by any shareholders irrespective of whether…

Q: The shareholders’ equity of Ceda Corporation is presented below: 10% Preference Share, 2,000 shares…

A: Issue price is the value of share at which the same has been issued by the entity.

Q: What amount should be charged to Retained Earnings account and credit liability accounts,…

A: Dividend refers to that portion of the net income of the company which the company paid to its…

Q: The shareholders' equity section of PRAY Corp. on December 31, 20x1 appeared as follows: Preference…

A: Unappropriated Retained Earnings Unappropriated Retained earning which is described as the amount…

Q: A corporation has 48,602 shares of $21 par stock outstanding that has a current market value of $372…

A: Lets understand the basics. Stock split is a spliting one share in more than one shares. For Ex.…

Q: The shareholders equity section of Batangas Corporation Statement of Financial Position at the end…

A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Q: BFAR Company reported the following Shareholders' at year-end: Share Capital, P50 par value Share…

A: Dividends are paid in two types Stock dividends and Cash dividends. Stock dividend means a payment…

Q: Star Ltd. issues 20,00020,000 ordinary shares for a price of £22. Considering the previous…

A: Please note there is typo in the question where the numbers are repeated twice. For example, the…

Q: What was the issue price per share of ordinary shares?

A: The ordinary share is a share whose shareholders are known as the company's real owners. These…

Q: The shareholders equity section of Batangas Corporation Statement of Financial Position at the end…

A: Preference shares are one of the type of shares. These are issued when the company want to raise…

Q: The Market capitalization value of share after stock split should be

A: Stock split helps in increasing the liquidating of shares by keeping the value of share capital…

Q: The accounts shown below pertain to P Company at December 31: Authorized Preference Share Capital,…

A: Authorised Stock: It is the maximum number of shares that a corporation is authorized to issue…

Q: The shareholder’ equity of L Corp on Dec 31, 2021 follows: 10% Preference share capital P100…

A: Preference share capital is the capital which gets preference over the equity share capital in terms…

Q: Item Nos. 14 and 15 are based on the following information: revealed the following information:…

A: The par value of outstanding shares is recorded as legal capital.

Q: A Corporation has 6,000 shares of P100 par value Ordinary Share Capital and reacquires 1,000 shares…

A: Treasury stock: Shares which are bought back by the company from the open…

Q: 7. ABC Co. reported this shareholders' equity on December 31,2020: 6% Preference shares P100 par…

A: The following computations are done for ABC Company.

Q: please answer numbers 4 and 5 only

A: 4)

Q: Calculated earnings per share, price earning ratio, and dividend payout ratio.

A: Formula: EPS= Net Income(PAT)- Preferred DividendNo of Outstanding Common Shares PE Ratio= Market…

Q: he following accounts are shown on the statement of financial position of Phoenix Corporation…

A: Treasury stocks are, generally, those stocks that are bought back from their own shareholders. It…

Q: The shareholder’ equity of M Corp on Dec 31, 2021 follows: 10% Preference share capital P100…

A: The dividend is declared to the shareholders from the retained earnings of the business. The book…

Q: ABC Co. ‘s shareholders’ equity on December 31,2020 are as follows: 7% preference shares P100 par…

A: Solution: Book value per share refers to the equity available to the common…

Q: The shareholders’ equity of Ceda Corporation is presented below: 10% Preference Share, 2,000 shares…

A: Total Preference Share Capital = Paid up Preference Share + Preference share premium = P200,000 +…

Question

Choices;

65.83

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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

36.The shareholders’ equity of Nicko Corporation is presented below: 10% Preference Share, 2,000 shares outstanding P200,000 Ordinary Shares, 5,000 shares outstanding 100,000100,000Preference share premium 20,000 Ordinary share premium 25,000 Retained Earnings 45,000 Dividend declared for the year P100,000 What is the amount of dividend recieved by Preference Share if Non Cummulative and Non Participating ?
How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating?
4. A company has 500 shares with a price of JD 10 per share, and a net income available for common stocks of JD 1000. Required Find the P/E.
The shareholder' equity of L Corp on Dec 31, 2021 follows: 10% Preference share capital P100 par, 45,000 shares P4,500,000 Ordinary share capital, P20 par, 180,000 shares P3,600,000 Preference share premium P1,000,000 Ordinary share premium P900,000 Retained Earnings P5,390,000 Total shareholder's equity P15,390,000 Preference share are cumulative with dividends in arrears for 2 years with a liquidation value of P110. What is the book value per share of preference share capital?
29. The shareholders’ equity of Seven Corporation is presented below: 10% Preference Share, 2,000 shares outstanding P800,000 Ordinary Shares, 5,000 shares outstanding 700,000 Preference share premium 200,000 Ordinary share premium 50,000 Retained Earnings 250,000 What is the amount of Contributed Capital?
32. A company reported the following information on December 31, 2021: Preference share, P100 par P230,000 Share premium – Preference 80,000 Ordinary share, P15 par 525,000 Share premium – Ordinary 275,000 Subscribed ordinary share 5,000 Retained earnings 190,000 Share dividends distributable 40,000 Subscription receivable - Ordinary 40,000 Determine the total shareholders’ equity.
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
Question. A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it at cost. What will be the effect on total stockholders' equity? 1. Decrease by $ 4,183,000 2. Increase by $ 4,183,000 3. Increase by $ 2,670,000 4. Decrease by $ 2,670,000
ABC Co. ‘s shareholders’ equity on December 31,2020 are as follows: 7% preference shares P100 par P3,000,000; Ordinary share capital, 50,000 shares P1,500,000; Donated capital P500,000; Accumulated profits P4,500,000. All preference dividends have been fully paid. If preference shares have total liquidation value of P3,200,000, how much is the book value per ordinary share? * 80 00 P130 P300 answer not given
The Corporation shareholders' equity section of the Statement of Financial Position includes the following accounts and balances: 12% Preference Share Capital, P100 par, 5,000 shares issued P500,000 Preference Share Premium 50,000 Retained earnings 750,000 The corporation decided to retire 2,000 of the Preference Shares at P115 per share. How much is the indicated gain or loss on retirement of the Preference Shares? Put a parenthesis if it is an indicated loss.
Problem 6. The following data were taken from the records of Valencia Frutti Corporation: Share Capital, P50 par, 3,000 shares, Authorized 1,000 shares issued Premium on Share Capital P50,000 3,000 Accumulated Profits (Losses) The Corporation reacquires 100 shares at P55.00 per share, and later sold these share for: a) P55.00 per share (at cost) b) P60.00 per share (above cost) c) P50.00 per share (below cost) Required: 1. Journal Entry to record the acquisition of the treasury shares. 2. Journal entry to record the sale of the treasury shares under the three given cases. 10,000