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On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P 4,250,000 • 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - P 1,500,000 • Share premium in excess of par - P 862,500 Reserve for Treasury shares - P 725,000 Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000 Retained earnings, unrestricted - P 2,168,000 Net income for the year - P 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P 4,250,000 • 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - P 1,500,000 • Share premium in excess of par - P 862,500 Reserve for Treasury shares - P 725,000 Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000 Retained earnings, unrestricted - P 2,168,000 Net income for the year - P 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 81PSA
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 1. How much is the Retained earnings, BEGINNING, unrestricted?

2. . How much is the dividend allocation for ORDINARY shareholders considering - Preference shares are non-cumulative and non-participating? 

On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P 4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - P 1,500,000 Share premium in excess of par - P 862,500 Reserve for Treasury shares - P 725,000 Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000 Retained earnings, unrestricted -P 2,168,000 Net income for the year - P 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included
Transcribed Image Text:On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P 4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - P 1,500,000 Share premium in excess of par - P 862,500 Reserve for Treasury shares - P 725,000 Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000 Retained earnings, unrestricted -P 2,168,000 Net income for the year - P 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included
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