7. The directors of PeteCorporation, whose P50 parvalue ordinary share iscurrently selling at P70 pershare, have decided todeclare a share dividend.Pete has an authorization for250,000 ordinary shares, hasissued 100,000 shares ofwhich 10,000 shares are nowheld as treasury, and desiresto capitalize P945,000 of theRetained Earnings balance.To accomplish this, thepercentage of share dividendthat the directors shoulddeclare isa. 18.9%O b. 15%c. 12%O d. 9%

Dividend: A dividend is a payment made by a firm to its shareholders in exchange for its earnings.…

Answered: 7. The directors of Pete Corporation,…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 14DQ

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Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys common stock and an increase in authorized common shares from 100,000 shares (par value 20 per share) to 200,000 shares (par value 10 per share). Baltimores shareholders equity items immediately before issuance of the stock split shares were as follows: What should be the balances in Baltimores Additional Paid-in Capital and Retained Earnings accounts immediately after the stock split is effected?
KAHITPUMASALANGOKAYNA CORPORATION provided the following data on December 31,201912% preference share capital, 20 000 shares, P100 par 2 000 00014% preference share capital, 10 000 shares, P300 par 3 000 000Ordinary share capital, 50 000 shares, P100 par 5 000 000retained earnings 2 240 000share premium 1 500 000the 12% preference share is cumulative and participating. the 14% preference share is noncumulatie and participating. dividends are in arrearsfor 3 years. the 12% preference share is conertible. each 12% preference share can be converted to 2 ordinary shares. ordinary shares outstanding on January 1,2019 were 25,000 shares. 15 000 shares were issued on July 1, while another 10 000 shares were issued on October 1. the issuance during the year was all at par. net income for the year was…
5. On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500. Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600.
2. On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total Share premium was P1,500,000. If half of the treasury shares were reissued at P10 per share, the entry to record the reissuance shall involve: Group of answer choices Credit to Share premium at P425,000. Debit to Accumulated profits at P425,000. Credit to Share premium at P850,000. Debit to Accumulated profits at P850,000.
On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. Theshares represent 10% of the shares outstanding of TIYAGA Corporation. On the same date, TIYAGAdeclared 20% share dividends payable to stockholders on October 31. On October 31, the stock is sellingat P12 per share. However, on October 31, TIYAGA Corporation gave P13 per share cash in lieu of thesupposed share dividends previously declareda. How much is the dividend income to be recognized in 2021?b. Prepare all the necessary entries during the year.
41. On June 1, 2020, Sunny Corporation declared a share capital dividend entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the market value was P 100 per share and the par value was P 50 per share. On this date, Golden had 65,000 shares issued and 5,000 shares in the treasury. What is the amount of deduction to Retained Earnings this June 1 transaction?
11. The following data of Slapshock Corporation as of December 31, 2019 showed the following: Preference share capital, P 100 par P 820,000; Ordinary share capital, P 30 par, 300,000 shares authorized, 100,000 shares issued and outstanding P3,000,000; Preference share premium P410,000; Ordinary share premium P3,300,000. What was the original issue price per share of preference share capital? 12. Using data in no. 11, what was the original issue price per share of ordinary share capital? 13. Using data in no. 11, how many shares of preference share capital were issued and outstanding as of December 31, 2019?

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