EXERCISE I 3The capital structure of Red Ribbon Corporation on December 31,2019 follows:12% Preference share capital, P 200 par, 30,000 shares issued and outstandingP 6,000,000Ordinary share capital, P 50 par, 100,000 shares issued and outstanding5,000,000Share Premium- Preference1,800,000Share Premium- Ordinary1,500,000Retained Earnings2,200,000During 2020, the following selected transactions occurred:1. Purchased and retired 4,000 preference shares at P 280 per share.2.Purchased 8,000 shares of its own ordinary share at P 80 per share.3. A 2-for-l share split on the ordinary share was approved by the shareholders, thereby reducing the parvalue to P 25.4. Reissued 6,000 treasury shares at P 45 each. I. Shareholder's donated 4,000 ordinary shares when the market price was P 46pershare.2. Two thousand of the donated shares were issued for P 48 share.per3. Declared the annual dividends on the preference share and PI per share dividend on ordinary shar.4.The profit for 2020 was P 2,000,000.REQUIRED: Determine the following at December 31,2020:a.) Number of preference shares issued and outstandingb.) Number of ordinary shares issued and outstandingc.) Cost of remaining treasury shares ( acquired by purchase)d.) The amount of total dividends declared during the year.e.) Total shareholder's equity

Preference shares are shares of a company's stock with dividends that are paid out to shareholders…

The capital structure of Red Ribbon Corporation on December 31,2019 follows: 12% Preference share capital, P 200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary share capital, P 50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium- Preference 1,800,000 Share Premium- Ordinary 1,500,000 Retained Earnings 2,200,000 During 2020, the following selected transactions occurred: 1. Purchased and retired 4,000 preference shares at P 280 per share. 2. Purchased 8,000 shares of its own ordinary share at P 80 per share. A 2-for-l share split on the ordinary share was approved by the shareholders, thereby reducing the pa value to P 25. 3. 4. Reissued 6,000 treasury shares at P 45 each.

The capital structure of Red Ribbon Corporation on December 31,2019 follows: 12% Preference share capital, P 200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary share capital, P 50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium- Preference 1,800,000 Share Premium- Ordinary 1,500,000 Retained Earnings 2,200,000 During 2020, the following selected transactions occurred: 1. Purchased and retired 4,000 preference shares at P 280 per share. 2. Purchased 8,000 shares of its own ordinary share at P 80 per share. A 2-for-l share split on the ordinary share was approved by the shareholders, thereby reducing the pa value to P 25. 3. 4. Reissued 6,000 treasury shares at P 45 each.

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 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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