Samantha Corporation provided the following data:Share Capital (P100 par) 5,000,000Share PremiumDec 31,2019Accumulated Profits2,500,0005,000,000Dec 31, 2020$5,100,0002,900,000?During 2020, the entity declared and paid cash dividends of $750,000 and also declared and issued a sharedividend. There were no other changes in shares issued and outstanding in 2019 aside from the share dividenddistribution. The net income for 2020 is $1,500,000. How much is the balance of Accumulated Profits onDecember 31, 2020? The directors of Canada Corporation, whose $50 par value share capital is currently selling at $60 per share, havedecided to issue a 10% share dividend. The corporation which has an authorization for 1,000,000 shares hadissued 500,000 shares, of which 100,000 are now held as treasury. How many shares are outstanding after theshare dividends were issued?

A Company can issue dividend in the form of cash or shares. Dividend can be declared from Free…

Answered: distribution. The net income for 2020…

distribution. The net income for 2020 is P1,500,000. How much is the balance of Accumulated Profits on December 31, 2020?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share...

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Question

Samantha Corporation provided the following data:
Share Capital (P100 par) 5,000,000
Share Premium
Dec 31,
2019
Accumulated Profits
2,500,000
5,000,000
Dec 31, 2020
$5,100,000
2,900,000
?
During 2020, the entity declared and paid cash dividends of $750,000 and also declared and issued a share
dividend. There were no other changes in shares issued and outstanding in 2019 aside from the share dividend
distribution. The net income for 2020 is $1,500,000. How much is the balance of Accumulated Profits on
December 31, 2020?

The directors of Canada Corporation, whose $50 par value share capital is currently selling at $60 per share, have
decided to issue a 10% share dividend. The corporation which has an authorization for 1,000,000 shares had
issued 500,000 shares, of which 100,000 are now held as treasury. How many shares are outstanding after the
share dividends were issued?

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