Malit Corporation has a total shareholders' equity of P1,000,000, including retainedearnings of P190,000. The cash balance is P350,000. The maximum cash dividendthe corporation can declare and pay isa. P1,000,000.b. P650,000.c. P350,000.d. P190,000.

Stockholders are the company's business owners who invest in the company's equity. As a return on…

Answered: Malit Corporation has a total…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...

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3. Earnings and Profits. A distribution is made when D, Inc. has assets valued at $500,000 (basis of $300,000), E&P of $80,000, and 10,000 shares of stock out-standing. T receives assets valued at $100,000 (basis of $60,000) for all his D stock (2,000 shares with a basis of $25,000). Compute the corporation’s E&P balance after the exchange if it is treated as (a) a dividend, or as (b) a sale.
INDIGO Corporation provided the following shareholders' equity accounts. What is the amount of legal capital? ₱ 8,725,000 ₱ 10,443,500 ₱ 8,981,000 ₱ 10,233,000
On January 20, HK Corporation was formed with the capital of 100.000 TL by issuing 100.000 shares of stock with " 1 par value. Stocks were sold for 1.21 TL each, 1.000 TL commission was charged for selling stocks and the remaining receipts were deposited to the bank account of the business. a. 120.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 100.000 TL credit to 110-Stocks; 21.000 TL credit to 645-MS Capital Gain O b. 120.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 100.000 TL credit to 501-Unpaid Capital; 21.000 TL credit to 520-A. Paid-in Capital O c. 121.000 TL debit to 102-Bank and 100.000 TL credit to 501-Unpaid Capital; 20.000 TL credit to 520-A. Paid-in Capital; 1.000 TL credit to 653-Com. Expense d. 120.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 100.000 TL credit to 110-Stocks; 21.000 TL credit to 520-A. Paid-in Capital
TINT Corporation presents the following condensed statement of financial position as of the close of the year: Cash ₱ 520,000 Accounts Payable ₱ 550,000Other Assets 1,333,000 Ordinary Share Capital 550,0005% Preference Share Capital 330,0007% Preference Share Capital 220,000Accumulated Profits 203,000Total Assets ₱ 1,853,000 Total Equities ₱ 1,853,000 The 5% preference share capital is cumulative, the 7% preference share capital is non-cumulative, but both arefully participating. The par value of all shares is ₱100.Requirements:C. Compute for the book value per share for:5. Ordinary shares6. 5% Preference shares7. 7% Preference shares
Houghton Company has the following items: share capital- ordinary, $820,000; treasury shares, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What amount should Houghton Company report as total equity?
Sandy Corporation’s balance sheet at January 2, 20x5 is as follows:Sandy-Dr(Cr)Cash and receivables P200,000,000Inventories 600,000,000.00Property, plant and equipment, net 7,500,000,000.00 Current liabilities (400,000,000.00)Long-term debt (7,200,000,000.00)Capital stock (7,200,000.00)Retained earnings (25,000,000.00)Accumulated othercomprehensive income (5,000,000.00) An analysis of Sandy’s assets and liabilities reveals that book values of some reported itemsdo not reflect their market values at the date of acquisition:● Inventories are overvalued by P200,000,000● Property, plant and equipment is overvalued by P2,000,000,000● Long-term debt is undervalued by P100,000,000 On January 2, 20x5, Velasco issues new stock with a market value of P700,000,000 toacquire the assets and liabilities of Sandy. Stock registration fees are P100,000,000, paid incash. Consulting, accounting, and legal fees connected with the merger are P150,000,000,paid in cash. In addition, Velasco enters into an…
On June 30, HK Corporation was formed with the capital of 200.000 TL by issuing 200.000 shares of stock with ¨ 1 par value. Stocks were sold for 1.21 TL each, 1.000 TL commission was charged for selling stocks and the remaining receipts were deposited to the bank account of the business. a.242.000 TL debit to 102-Bank and 200.000 TL credit to 501-Unpaid Capital; 41.000 TL credit to 520-A. Paid-in Capital; 1.000 TL credit to 653-Com. Expense b.241.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 200.000 TL credit to 501-Unpaid Capital; 42.000 TL credit to 520-A. Paid-in Capital c.241.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 200.000 TL credit to 110-Stocks; 42.000 TL credit to 520-A. Paid-in Capital d.241.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 200.000 TL credit to 110-Stocks; 42.000 TL credit to 645-MS Capital Gain
Choose the letter of the correct answer. How much is the total assets, liabilities and shareholder' equity of Tom Corporation? (check the picture attached) a. Asset = P 326,000; Liabilities = P 130,000; Shareholder's equity = P 196,000 b. Asset = P 320,000; Liabilities = P 136,000; Shareholder's equity = P 184,000 c. Asset = P 200,000; Liabilities = P 70,000; Shareholder's equity = P 130,000 d. Asset = P 326,000; Liabilities = P 180,000; Shareholder's equity = P 146,000
he information below relates to questions 1 – 16. The following information pertains to Honey Limited. Extract from ledger account balances as at 30 September: 2022 2021 R R Share capital: Ordinary shares 380 500 338 300 Share capital: Preference shares 291 000 264 700 Retained earnings 66 200 48 400 Long-term loan - ABC Bank 88 000 120 000 Land and buildings at cost 623 000 401 000 Machinery and equipment at carrying amount 262 300 222 700 Inventory 83 500 73 000 Trade receivables control 92 700 83 300 Listed investments 110 000 0 Bank 25 200 46 300 Trade payables control 66 500 52 600 SARS (income tax) 63 400 48 700 Dividends payable 46 200 62 000 Dividends receivable 0 0 Accrued expenses (wages) 0 11 400 Prepaid expenses 11 200 4 200 Revenue 805 800 Cost of sales 392 400 Administrative, distribution and other expenses 160 200 Fair value gain on listed investments 8 600 Dividends income 20 800 Loss on sale of machinery…
The following information relates to the Bondoc Corporation: Sales Revenue 9,000,000 Net assets, end of year 500,000 Net assets, beginning of year 300,000 Additional Investment by shareholders 100,000 Profit of the year 200,000 other comprehensive income for the year 50,000 Compute the amount of dividends paid during the year A. 550,000 B. 200,000 C. 150,000 D. 50,000
INDIGO Corporation provided the following shareholders' equity accounts. What is the amount of legal capital? * PLEASE SHOW HOW TO GET THIS ANSWER ₱ 8,981,000
Haricot Corporation and Pinto Corporation both have operating profits of $165 million. Haricot is financed solely by equity, while Pinto has issued $215 million of 6% debt. If the corporate tax rate is 21%: Required: a. How much tax does each company pay? b. What is the total payout to investors (debtholders plus shareholders) of each company? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B How much tax does each company pay? Note: Enter your answer in dollars not in millions. Tax Amount Haricot Pinto $ 21 x $ 21 x

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Malit Corporation has a total shareholders' equity of P1,000,000, including retained earnings of P190,000. The cash balance is P350,000. The maximum cash dividend the corporation can declare and pay is a. P1,000,000. b. P650,000. C. P350,000. d. P190,000.