Kindly use "Partnership and Corporation Accounting" by Ballada2020 issue - 22nd edition as reference for the table and terms. Dividends on Preference and Ordinary SharesThe preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 312019 follows:8% Preference Shares, P10 par, cumulative,participating, 40,000 shares authorized, 10,000shares issued and outstandingP100,000Ordinary Shares, P2 par, 10,000,000 shares authorized,250,000 shares issued and outstandingTotal Preference and Ordinary Shares500,000P600,000Required:Calculate the amount of dividends received by preference and ordinary shareholders,respectively, under each of the following assumptions:1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzadadeclared a total dividend of P56,000.2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a totaldividend of P66,000.3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. DelaCalzada declared a total dividend of P88,000. Dividends on Preference and Ordinary SharesLord Aguilar Corp. plans to declare and distribute a dividend in December 2019. Thereare 20,000 shares of 7% preference shares, par value P50, and 400,000 outstandingordinary shares, P1 par value. No dividend was paid in the previous year.Required: Determine the amount of the dividends that should be paid to the preferenceand ordinary shareholders if the preference shares1. cumulative and nonparticipating and the total amount that the board of directorshas specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000.2. cumulative and participating and the total amount that the board of directors hasspecified for dividends is (a) P100,000, (b) P168,000, (c) P200,000.

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Answered: Dividends on Preference and Ordinary…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 9SPB: CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio...

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Kindly use "Partnership and Corporation Accounting" by Ballada 2020 issue - 22nd edition as reference for the table and terms.

Dividends on Preference and Ordinary Shares
The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31
2019 follows:
8% Preference Shares, P10 par, cumulative,
participating, 40,000 shares authorized, 10,000
shares issued and outstanding
P100,000
Ordinary Shares, P2 par, 10,000,000 shares authorized,
250,000 shares issued and outstanding
Total Preference and Ordinary Shares
500,000
P600,000
Required:
Calculate the amount of dividends received by preference and ordinary shareholders,
respectively, under each of the following assumptions:
1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada
declared a total dividend of P56,000.
2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total
dividend of P66,000.
3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela
Calzada declared a total dividend of P88,000.

Dividends on Preference and Ordinary Shares
Lord Aguilar Corp. plans to declare and distribute a dividend in December 2019. There
are 20,000 shares of 7% preference shares, par value P50, and 400,000 outstanding
ordinary shares, P1 par value. No dividend was paid in the previous year.
Required: Determine the amount of the dividends that should be paid to the preference
and ordinary shareholders if the preference shares
1. cumulative and nonparticipating and the total amount that the board of directors
has specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000.
2. cumulative and participating and the total amount that the board of directors has
specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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