ABC Co.'s reported this shareholders' equity at December 31, 2020: Preference Share capital, 10%, 20,000 shares Ordinary Share capital, P100 par Subscribed ordinary share capital 20,000 shares P2,000,000 4,000,000 2,000,000 500,000 Subscription receivable Share Premium 1,000,000 Retained Earnings 2,400,000 Treasury ordinary shares – 10,000 at cost 800,000 Dividends on preference shares are in arrears for 2018, 2019 and 2020. IF the preference shares are participating, what is the book value per ordinary share?

ABC Co.'s reported this shareholders' equity at December 31, 2020: Preference Share capital, 10%, 20,000 shares Ordinary Share capital, P100 par Subscribed ordinary share capital 20,000 shares P2,000,000 4,000,000 2,000,000 500,000 Subscription receivable Share Premium 1,000,000 Retained Earnings 2,400,000 Treasury ordinary shares – 10,000 at cost 800,000 Dividends on preference shares are in arrears for 2018, 2019 and 2020. IF the preference shares are participating, what is the book value per ordinary share?

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 24E

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Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
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