Homework Help is Here – Start Your Trial Now!
Business
Accounting
CPA Company had these equity accounts: Preference share capital, PS00 par, 2,200 shares Treasury preference share, at cost, 100 shares Ordinary share capital, no par (at issue price), 3,000 shares Accumulated profits P1,100,000 110,000 600,000 2,500,000 Due to the substantial amount of accumulated profits, the Board of Directors resolved to pay a 100% stock dividend on all outstanding shares, capitalizing amounts of accumulated profits equal to the par value of the preference shares and the issue price of the ordinary shares outstanding, and thereafter to pay a cash dividend of 10% on the preference shares and a cash dividend of P10 per ordinary share. What is the total shareholders' equity after effecting the dividend transactions?

CPA Company had these equity accounts: Preference share capital, PS00 par, 2,200 shares Treasury preference share, at cost, 100 shares Ordinary share capital, no par (at issue price), 3,000 shares Accumulated profits P1,100,000 110,000 600,000 2,500,000 Due to the substantial amount of accumulated profits, the Board of Directors resolved to pay a 100% stock dividend on all outstanding shares, capitalizing amounts of accumulated profits equal to the par value of the preference shares and the issue price of the ordinary shares outstanding, and thereafter to pay a cash dividend of 10% on the preference shares and a cash dividend of P10 per ordinary share. What is the total shareholders' equity after effecting the dividend transactions?

Intermediate Accounting: Reporting And Analysis
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 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
See similar textbooks
icon
Related questions
Question
100%
A) 3,810,000 B) 3,820,000 C) 3,950,000 D) 4,090,000 E) Answer not given
CPA Company had these equity accounts: Preference share capital, P500 par, 2,200 shares Treasury preference share, at cost, 100 shares Ordinary share capital, no par (at issue price), 3,000 shares Accumulated profits P1,100,000 110,000 600,000 2,500,000 Due to the substantial amount of accumulated profits, the Board of Directors resolved to pay a 100% stock dividend on all outstanding shares, capitalizing amounts of accumulated profits equal to the par value of the preference shares and the issue price of the ordinary shares outstanding, and thereafter to pay a cash dividend of 10% on the preference shares and a cash dividend of P10 per ordinary share. What is the total shareholders' equity after effecting the dividend transactions?
Transcribed Image Text:CPA Company had these equity accounts: Preference share capital, P500 par, 2,200 shares Treasury preference share, at cost, 100 shares Ordinary share capital, no par (at issue price), 3,000 shares Accumulated profits P1,100,000 110,000 600,000 2,500,000 Due to the substantial amount of accumulated profits, the Board of Directors resolved to pay a 100% stock dividend on all outstanding shares, capitalizing amounts of accumulated profits equal to the par value of the preference shares and the issue price of the ordinary shares outstanding, and thereafter to pay a cash dividend of 10% on the preference shares and a cash dividend of P10 per ordinary share. What is the total shareholders' equity after effecting the dividend transactions?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
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.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS