On January 15, 2022, the entity formally retired all the 30,000 treasury shares. The treasury shares were originally issued at P10 per share. • The entity owned 10,000 shares of LAW Company purchased for P800,000. The LAW shares were included in non-current equity securities. • On December 31, 2022, the entity declared a dividend in kind of one share of LAW for every hundred ordinary shares held by a shareholder. • The fair value of the LAW share is P90 on December 31, 2022. The dividend in kind was distributed on March 15, 2023 when the fair value of LAW share is P95. • On December 31, 2022, the entity declared the yearly cash dividend on preference share, payable on January 15, 2023. Profit for 2022 was P3,000,000. 1. What amount should be charged to retained earnings for the retirement of treasury shares on January 15, 2022? [Select] 2. What amount should be charged to retained earnings for the property dividend on ordinary shares on December 31, 2022? [ Select ] 3. What amount should be charged to retained earnings for the preference dividend declared on December 31,2022? [ Select ] 4. What amount should be reported as retained earnings on December 31, 2022? [ Select ] CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital, P100 par, 10% 2,000,000 cumulative Ordinary share capital, no par, P5 stated 5,150,000 value Share premium 3,500,000 Retained earnings 4,000,000 Treasury ordinary shares 400,000
On January 15, 2022, the entity formally retired all the 30,000 treasury shares. The treasury shares were originally issued at P10 per share. • The entity owned 10,000 shares of LAW Company purchased for P800,000. The LAW shares were included in non-current equity securities. • On December 31, 2022, the entity declared a dividend in kind of one share of LAW for every hundred ordinary shares held by a shareholder. • The fair value of the LAW share is P90 on December 31, 2022. The dividend in kind was distributed on March 15, 2023 when the fair value of LAW share is P95. • On December 31, 2022, the entity declared the yearly cash dividend on preference share, payable on January 15, 2023. Profit for 2022 was P3,000,000. 1. What amount should be charged to retained earnings for the retirement of treasury shares on January 15, 2022? [Select] 2. What amount should be charged to retained earnings for the property dividend on ordinary shares on December 31, 2022? [ Select ] 3. What amount should be charged to retained earnings for the preference dividend declared on December 31,2022? [ Select ] 4. What amount should be reported as retained earnings on December 31, 2022? [ Select ] CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital, P100 par, 10% 2,000,000 cumulative Ordinary share capital, no par, P5 stated 5,150,000 value Share premium 3,500,000 Retained earnings 4,000,000 Treasury ordinary shares 400,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 11MC: A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning