Answered: . the preference share stock is both…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 3SEA

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8. The following is the abstract of the shareholders’ equity of Shake Corporation before the declaration of cash dividends:(see attached image for the give. please answer it. thank you so much)The Board declared dividends of P900,000. No dividends were distributed last year.

(see attached image for the given. someone already answer letter a to c, so please answer letter d to e, please answer it based on your knowledge. thank you so much!)

Direction: Determine how much dividends the preference and ordinary shares will receive given the following independent situations:

d. the preference share stock is both cumulative and participating

e. the preference share is participating only up to 15%

I The following is the abstract of the shareholders' equity of Shake Corporation before the
declaration of cash dividends:
12% Preference Share Capital, par P100,
30,000 shares all issued and outstanding
Ordinary Share Capital, P50 par, 20,000
shares all issued and outstanding
Retained Earnings
P3,000,000
1,000,000
5,500,000
The Board declared dividends of P900,000. No dividends were distributed last year.
Direction: Determine how much dividends the preference and ordinary shares will
receive given the following independent situations:
a. the preference share is non-cumulative and non-participating
b. the preference share is participating
C. the preference share is cumulative
d. the preference share stock is both cumulative and participating
C. the preference share is participating only up to 15%

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