Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 16, Problem 8MC
Hyde Corporation’s capital structure at December 31, 2018, was as follows:
On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of $2.00 per share on its
- a. $7.80
- b. $7.09
- c. $7.68
- d. $6.73
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Pluto Company began operations on January 1, 2019 with an authorized capital
of 500,000 preference shares of P5 par value of which 30% of which was issued
for P7 and 950,000 ordinary shares of P10 par value of which half were issued on
January 1, 2019 at P15 per share. During the year, the company had a net income
of P1,250,000 and declared dividends of P250,000.
The following were the transactions in 2020:
a. Issued 100,000 ordinary shares for P17
b. Issued 150,000 preference shares for P8 per share.
c. Authorized the purchase of a custom made machine to be delivered in
January 2021. Pluto Company appropriated P300,000 of accumulated profits
for the purchase of the machine.
d. Issued additional 50,000 preference shares for P9 per share,
e. Net income for the year, P1,200,000. Dividends of P600,000 were declared
for 2020 to shareholders of record on January 15, 2021 to be paid on March
15, 2021
per
share.
What is the total contributed capital as of December 31, 20207
The Shareholders’ Equity section of Green Corporation at December 31, 2019 showed the following: 8% cumulative Preference share capital, P 100 par, liquidating value P110 - P2,000,000; Ordinary Share Capital, P50 par - P2,500,000; Additional Paid In Capital - P 500,000; Retained Earnings - P 1,000,000. During the year, the company earned profit of P 500,000.
a. Compute the book value per share for the Preference share assuming dividends are in arrears for 3 years including the current year.
b. Compute the book value per share for the Ordinary Share Capital.
Blossom SA reported the following balances
at December 31, 2019: share capital-ordinary
€530,000, share premium-ordinary €115,000,
and retained earnings €310,000. During 2020,
the following transactions affected equity.
1. Issued preference shares with a par value of €140,000 for €247,000.
2. Purchased treasury shares (ordinary) for €45,000.
Earned net income of €174,000.
Declared and paid cash dividends of €52,000
3.
4.
Prepare the equity section of Blossom SA's
December 31, 2020, statement of financial
position.
Chapter 16 Solutions
Intermediate Accounting: Reporting And Analysis
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