AA8The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the followingaccount balances:Dividends PayableP 40,000Ordinary Share Capital (P5 par, 500,000 shares750,000authorized)Ordinary Share Capital Subscribed (10,000 shares)25,000Ordinary Share Premium50,00010% Preference Share Capital (25,000 shares authorized,12,000 shares outstanding)300,000Preference Share Premium30,000Retained Earnings Appropriated for Contingencies150,000Retained Earnings Appropriated for Bond Retirement100,000Retained Earnings-Unappropriated450,000Ordinary Share Capital Dividends Distributable105,000Paid-in Capital from Share Capital Dividend63,000 Using the information in AA8, what is the par value for each preference share capital?P 12P 10P 25P 40

Preference shareholders enjoy the preference of capital redemption in the event of liquidation of…

AA8 The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account balances: Dividends Payable P 40,000 Ordinary Share Capital (P5 par, 500,000 shares 750,000 authorized) Ordinary Share Capital Subscribed (10,000 shares) 25,000 Ordinary Share Premium 50,000 10% Preference Share Capital (25,000 shares authorized, 12,000 shares outstanding) 300,000 Preference Share Premium 30,000

AA8 The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account balances: Dividends Payable P 40,000 Ordinary Share Capital (P5 par, 500,000 shares 750,000 authorized) Ordinary Share Capital Subscribed (10,000 shares) 25,000 Ordinary Share Premium 50,000 10% Preference Share Capital (25,000 shares authorized, 12,000 shares outstanding) 300,000 Preference Share Premium 30,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 27DQ

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