Answered: Viel Corporation’s outstanding shares…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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Question

Viel Corporation’s outstanding shares at December 15, 2020, consisted of the following:

• 200,000 shares of 5% Preference Shares, P10 par value.
• 400,000 Ordinary Shares, P20 par value.

On this date, Viel declared cash dividends of P1,200,000.

Case 1

Preference Shares are noncumulative and non-participating. Preference dividends for 2018 and 2019 are in arrears.

1. How much is the total dividends to be given to the preference shares? *

2. How much is the total dividends to be given to the ordinary shares? *

3. How much is the dividend per share for preference shares? *

4. How much is the dividend per share for ordinary shares? *

5. If you own 15,000 preference shares and 100,000 ordinary shares, how much is the total cash you will receive from the corporation? *

Case 2

Preference Shares are cumulative and non-participating. Preference dividends for 2019 are in arrears.

1. How much is the total dividends to be given to the preference shares? *

2. How much is the total dividends to be given to the ordinary shares? *

3. How much is the dividend per share for preference shares? *

4. How much is the dividend per share for ordinary shares? *

5. If you own 15,000 preference shares and 100,000 ordinary shares, how much is the total cash you will receive from the corporation? *

Case 3

Preference Shares are non-cumulative and participating. Preference dividends for 2018 and 2019 are in arrears.

1. How much is the total dividends to be given to the preference shares? *

2. How much is the total dividends to be given to the ordinary shares? *

3. How much is the dividend per share for preference shares? *

4. How much is the dividend per share for ordinary shares? *

5. If you own 15,000 preference shares and 100,000 ordinary shares, how much is the total cash you will receive from the corporation? *

Case 4

Preference Shares are cumulative and participating. Preference dividends for 2018 and 2019 are in arrears.

1. How much is the total dividends to be given to the preference shares? *

2. How much is the total dividends to be given to the ordinary shares? *

3. How much is the dividend per share for preference shares? *

4. How much is the dividend per share for ordinary shares? *

5. If you own 15,000 preference shares and 100,000 ordinary shares, how much is the total cash you will receive from the corporation? *

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