Willy Company's equity balances on December 31, 2020 are: 10% noncumulative preference share capital, P100 par, 100,000 shares Ordinary share capital, P100 par value, 500,000 shares Retained earnings Dividends in arrears on the preference shares are for 5 years. If the colpany were to be liquidated, the preference shareholders would receive par plus a premium of P1,000,000. The book value per share of ordinary shares is P10,000,000 50,000,000 15,000,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Willy Company's equity balances on December 31, 2020 are:
10% noncumulative preference share capital, P100 par,
100,000 shares
Ordinary share capital, P100 par value, 500,000 shares
Retained earnings
Dividends in arrears on the preference shares are for 5 years. If the colpany were to
be liquidated, the preference shareholders would receive par plus a premium of
P1,000,000. The book value per share of ordinary shares is
P10,000,000
50,000,000
15,000,000
Transcribed Image Text:Willy Company's equity balances on December 31, 2020 are: 10% noncumulative preference share capital, P100 par, 100,000 shares Ordinary share capital, P100 par value, 500,000 shares Retained earnings Dividends in arrears on the preference shares are for 5 years. If the colpany were to be liquidated, the preference shareholders would receive par plus a premium of P1,000,000. The book value per share of ordinary shares is P10,000,000 50,000,000 15,000,000
The shareholders' equity for the Mekeni Foods, Inc. on December 31, 2013 follows:
12% Preference share capital, P100 par, 20,000 shares
Ordinary share capital, P25 par, 200,000 shares
Share premium
Retained earnings
Total shareholders' equity
P2,000,000
5,000,000
500,000
750,000
P8,250,000
Preference shares have a liquidation value of P110; shares are cumulative, with
dividends in arrears for 3 years including the current year and fully payable in the event
of liquidation. The book value of an ordinary share is
Transcribed Image Text:The shareholders' equity for the Mekeni Foods, Inc. on December 31, 2013 follows: 12% Preference share capital, P100 par, 20,000 shares Ordinary share capital, P25 par, 200,000 shares Share premium Retained earnings Total shareholders' equity P2,000,000 5,000,000 500,000 750,000 P8,250,000 Preference shares have a liquidation value of P110; shares are cumulative, with dividends in arrears for 3 years including the current year and fully payable in the event of liquidation. The book value of an ordinary share is
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