At its meeting on December 1, 2021, the board of directors of ABC Co. declares a cash dividend of P2 per share, payable on February 1, 2022 to shareholders of record on December 25, 2021. The following are the ordinary shares outstanding on different dates:December 1, 2021 - 40,000 sharesDecember 25, 2021 - 50,000 sharesDecember 31, 2021 - 55,000 sharesFebruary 1, 2022 - 60,000 sharesOn December 31, 2021, what is the amount of dividend payable that should be recognized in the statement of financial position?a. P80,000b. P100,000c. P110,000d. P120,000

Cash dividend is payable to the shareholders who have the name on the shareholders register on the…

Answered: At its meeting on December 1, 2021, the…

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 1MC: Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter...

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At its meeting on December 1, 2021, the board of directors of ABC Co. declares a cash dividend of P2 per share, payable on February 1, 2022 to shareholders of record on December 25, 2021. The following are the ordinary shares outstanding on different dates:

December 1, 2021 - 40,000 shares
December 25, 2021 - 50,000 shares
December 31, 2021 - 55,000 shares
February 1, 2022 - 60,000 shares

On December 31, 2021, what is the amount of dividend payable that should be recognized in the statement of financial position?

a. P80,000

b. P100,000

c. P110,000

d. P120,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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