b) East Company issued 1,000 shares with P5 par to Howe as compensation for1,000 hours of legal services performed. Howe bills P160 per hour for his legal1,000 hours of legal services performed. Howe bills P160 per hour for hiei 1orservices. By what amount should the share premium accoùnt increase as a resuleòf the transaction?c)Faela Corporation has the following share capital balances as of December 31,2020:12% Cumulative and participating Preference Share Capital,P20 parP 2,500,000valueOrdinary Share Capital, P10 par value1,500,000The last dividend paid was in the year 2017. On December 28, 2020, thecorporation declared P2,000,000 cash dividend to be paid on January 15, 2021 toshareholders of record December 31, 2020.How much dividend should be distributed to ordinary and preference shareholders,respectively? How much is the cash dividend per preference and ordinary share?

Hi Student Since there are multiple questions, we will answer only first question.

1,000 hours of legal services performed. Howe bills P160 per hour for his legal b) East Company issued 1,000 shares with P5 par to Howe as compensation for services. By what amount should the share premium accoùnt increase as a ro of the transaction? 25

1,000 hours of legal services performed. Howe bills P160 per hour for his legal b) East Company issued 1,000 shares with P5 par to Howe as compensation for services. By what amount should the share premium accoùnt increase as a ro of the transaction? 25

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 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

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Question

b) East Company issued 1,000 shares with P5 par to Howe as compensation for
1,000 hours of legal services performed. Howe bills P160 per hour for his legal
1,000 hours of legal services performed. Howe bills P160 per hour for hiei 1or
services. By what amount should the share premium accoùnt increase as a resule
òf the transaction?
c)
Faela Corporation has the following share capital balances as of December 31,
2020:
12% Cumulative and participating Preference Share Capital,
P20 par
P 2,500,000
value
Ordinary Share Capital, P10 par value
1,500,000
The last dividend paid was in the year 2017. On December 28, 2020, the
corporation declared P2,000,000 cash dividend to be paid on January 15, 2021 to
shareholders of record December 31, 2020.
How much dividend should be distributed to ordinary and preference shareholders,
respectively? How much is the cash dividend per preference and ordinary share?

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