Problem 2The shareholders' equity of Tony Corporation revealed the following on June 30, 2018:Preference share, P100 par valePreference share premiumOrdinary share, P15 par valueOrdinary share premiumOrdinary share subscribedRetained earningsNotes payableSubscriptions receivable - ordinaryP230,00080,500525,000275,0005,000190,000400,00040,00028. How much is the legal capital?29. Using the data in problem #2, how much is the additional paid in capital?30. Using the data in problem #2, how much is the total shareholders' equity?Problem 3A corporation declared a 40% share dividend on its 60,000 shares of P20 par ordinary shares ona day when the market price is P50.31. How much was debited to retained earnings on the date of declaration?32. Using information in problem #3, what is the peso dividend per ordinary share?33. Using information if problem #3 and assuming the share capital dividend declaredis 4/40, what is the share premium from stock dividends?

As per rule, allowed to answer first question and post the remaining in the next submission.

Answered: P230,000 80,50C 525,000 275,000 5,000…

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 17E

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Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets of $587,000 and the following equity account balances at December 31, 2019: Lances common stock is selling for $12 per share on December 31, 2019. Required: How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend. CONCEPTUAL CONNECTION How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-l stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?
Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
Common stockholders' profitability analysis A company reports the following: Net income 1,000,000 Preferred dividends 50,000 Average stockholders' equity 6,250,000 Average common stockholders' equity 3,800,000 Determine (A) the return on stockholders equity and (B) the return on common stockholders' equity. (Round percentages to one decimal place.)

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