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Micellar Company had the following available information as of December 31, 2021: Preferred Share Capital, 3% Php150 par value, cumulative, 80,000 shares authorized, 10,000 shares outstanding Php 1,500,000 Ordinary Share Capital, Php 100 par value, 100,000 shares authorized, 35,000 shares issued, 34,000 shares outstanding 3,500,000 Share Premium 2,500,000 3,100,000 Retained eamings (unadjusted balance) Treasury Shares, 1,000 shares at cost (80,000) Additional Information: 1. On December 29, 2021, the BOD determined that the company has ample cash and decided to declare dividends amounting to Php120,000. 2. The company did not pay any dividends in 2020. 3. Net income for the year was Php2 700 000. The amount of net incompan and dividends declared are yet to be closed to the Retained Earnings account. Requirements: a) Determine the amount paid to the preference shareholders in 2021 b) Determine the amount paid to the ordinary shareholders in 2021 c) Determine the amount paid to the ordinary shareholders in 2021 assuming that the preferred shares are non-cumulative d) Compute the earnings per share (using assumption in letter c) e) Compute the amount of Retained Earnings to be reported in the balance sheet Your answer

Micellar Company had the following available information as of December 31, 2021: Preferred Share Capital, 3% Php150 par value, cumulative, 80,000 shares authorized, 10,000 shares outstanding Php 1,500,000 Ordinary Share Capital, Php 100 par value, 100,000 shares authorized, 35,000 shares issued, 34,000 shares outstanding 3,500,000 Share Premium 2,500,000 3,100,000 Retained eamings (unadjusted balance) Treasury Shares, 1,000 shares at cost (80,000) Additional Information: 1. On December 29, 2021, the BOD determined that the company has ample cash and decided to declare dividends amounting to Php120,000. 2. The company did not pay any dividends in 2020. 3. Net income for the year was Php2 700 000. The amount of net incompan and dividends declared are yet to be closed to the Retained Earnings account. Requirements: a) Determine the amount paid to the preference shareholders in 2021 b) Determine the amount paid to the ordinary shareholders in 2021 c) Determine the amount paid to the ordinary shareholders in 2021 assuming that the preferred shares are non-cumulative d) Compute the earnings per share (using assumption in letter c) e) Compute the amount of Retained Earnings to be reported in the balance sheet Your answer

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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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Micellar Company had the following available information as of December 31, 2021: Preferred Share Capital, 3% Php150 par value, cumulative, 80,000 shares authorized, 10,000 shares outstanding Php 1,500,000 Ordinary Share Capital, Php 100 par value, 100,000 shares authorized, 35,000 shares issued, 34,000 shares outstanding 3,500,000 Share Premium 2,500,000 Retained earnings (unadjusted balance) 3,100,000 Treasury Shares, 1,000 shares at cost (80,000) Additional Information: 1. On December 29, 2021, the BOD determined that the company has ample cash and decided to declare dividends amounting to Php120,000. 2. The company did not pay any dividends in 2020. 3. Net income for the year was Php2,700 000. The amount of net incomp and dividends declared are yet to be closed to the Retained Earrings account. Requirements: a) Determine the amount paid to the preference shareholders in 2021 b) Determine the amount paid to the ordinary shareholders in 2021 c) Determine the amount paid to the ordinary shareholders in 2021 assuming that the preferred shares are non-cumulative d) Compute the earnings per share (using assumption in letter c) e) Compute the amount of Retained Earnings to be reported in the balance sheet
Transcribed Image Text:Micellar Company had the following available information as of December 31, 2021: Preferred Share Capital, 3% Php150 par value, cumulative, 80,000 shares authorized, 10,000 shares outstanding Php 1,500,000 Ordinary Share Capital, Php 100 par value, 100,000 shares authorized, 35,000 shares issued, 34,000 shares outstanding 3,500,000 Share Premium 2,500,000 Retained earnings (unadjusted balance) 3,100,000 Treasury Shares, 1,000 shares at cost (80,000) Additional Information: 1. On December 29, 2021, the BOD determined that the company has ample cash and decided to declare dividends amounting to Php120,000. 2. The company did not pay any dividends in 2020. 3. Net income for the year was Php2,700 000. The amount of net incomp and dividends declared are yet to be closed to the Retained Earrings account. Requirements: a) Determine the amount paid to the preference shareholders in 2021 b) Determine the amount paid to the ordinary shareholders in 2021 c) Determine the amount paid to the ordinary shareholders in 2021 assuming that the preferred shares are non-cumulative d) Compute the earnings per share (using assumption in letter c) e) Compute the amount of Retained Earnings to be reported in the balance sheet
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