Use the following information for the next three (3) questions: Fantasy Company has the following capital structure at the beginning of 2023 6% Cumulative, fully-participating preferred stock, P50 par value, 50,000 shares authorized, 12,000 shares issued and outstanding 600,000 Common stock, P10 par value, 200,000 authorized; 147,500 issued and outstanding 1,475,000 Additional paid-in capital in excess of par – preferred 180,000 Additional paid-in capital in excess of par – common 1,180,000 Retained earnings (P2,500,000 appropriated for plant expansion) 4,500,000 7,935,000 During 2023 the following transactions occurred: February 11 Fantasy Company acquired 6,000 preferred shares at P70 per share and 40,000 common shares at P22 per share. Fantasy Company is using the cost-method in recording treasury shares March 31 Issued 2,000 preferred treasury shares at P73 per share April 7 Issued 15,000 common treasury shares at P25 per share July 1 Issued 1,500 preferred treasury shares at P68/share & 20,000 common treasury shares at P19 per share August 15 Retired the remaining preferred and common treasury shares September 1 Plant expansion was completed November 22 Board of directors appropriated P2,000,000 for plant expansion in Mactan, Cebu. Likewise, the Board issued a 3-year, 10% P1,500,000 face value bonds to partially fund the construction. A sinking fund was set-up for the extinguishment of the bonds at their maturity December 31 Net income for the period P1,400,000. Total cash dividend declared and paid P500,000. No dividends have been declared in 2022. A property dividend was likewise declared, the distribution of which is on January 6, 2024. The carrying amount of the property declared as dividend was P800,000; the fair value of which was P1,000,000 The retained earnings – appropriated at the end of 2023 is Group of answer choices 1,500,000 2,000,000 3,500,000 6,000,000
Use the following information for the next three (3) questions:
Fantasy Company has the following capital structure at the beginning of 2023
|
6% Cumulative, fully-participating preferred stock, P50 par value, 50,000 shares authorized, 12,000 shares issued and outstanding |
600,000 |
|
Common stock, P10 par value, 200,000 authorized; 147,500 issued and outstanding |
1,475,000 |
|
Additional paid-in capital in excess of par – preferred |
180,000 |
|
Additional paid-in capital in excess of par – common |
1,180,000 |
|
|
4,500,000 |
|
|
7,935,000 |
During 2023 the following transactions occurred:
|
February 11 |
Fantasy Company acquired 6,000 |
|
March 31 |
Issued 2,000 preferred treasury shares at P73 per share |
|
April 7 |
Issued 15,000 common treasury shares at P25 per share |
|
July 1 |
Issued 1,500 preferred treasury shares at P68/share & 20,000 common treasury shares at P19 per share |
|
August 15 |
Retired the remaining preferred and common treasury shares |
|
September 1 |
Plant expansion was completed |
|
November 22 |
Board of directors appropriated P2,000,000 for plant expansion in Mactan, Cebu. Likewise, the Board issued a 3-year, 10% P1,500,000 face |
|
December 31 |
Net income for the period P1,400,000. Total cash dividend declared and paid P500,000. No dividends have been declared in 2022. A property dividend was likewise declared, the distribution of which is on January 6, 2024. The carrying amount of the property declared as dividend was P800,000; the fair value of which was P1,000,000 |
- The retained earnings – appropriated at the end of 2023 is
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