Required:5B. What is the number of PREFERENCE shares outstanding? *6. How much is the EARNINGS PER SHARE, considering that the preference shares are cumulative and non-participating? (Present your answer with 2 decimal places, example: x.xx) *7. How much is the Retained earnings, BEGINNING, unrestricted? * On December 31, 2021, the statement of financial position of FRUITS Company showed thefollowing shareholders' equity accounts:• Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury7,500 shares - P 4,250,00012% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, intreasury 4,000 shares - P 1,500,000Share premium in excess of par - P 862,500Reserve for Treasury shares - P 725,000Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000Retained earnings, unrestricted -P 2,168,000Net income for the year - P 762,000Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

5B. Number of PREFERENCE shares outstanding = No. of shares issued -tresaury shares = 20000 - 4000 =…

Answered: On December 31, 2021, the statement of…

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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5B. What is the number of PREFERENCE shares outstanding? *

6. How much is the EARNINGS PER SHARE, considering that the preference shares are cumulative and non-participating? (Present your answer with 2 decimal places, example: x.xx) *

7. How much is the Retained earnings, BEGINNING, unrestricted? *

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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