4. An entity showed the following data: Share capital, par value P50 5,000,000 Share premium 200,000 Retained Earnings 2,000,000 Market value of share on declaration date 75 Market value of share on distribution date 85 Treat each item independently: a. If the entity would declare a 1 for 5 share dividend, what amount would be charged to retained earnings? b. What amount will be credited to share premium if the entity would declare 15% share dividend?

4. An entity showed the following data: Share capital, par value P50 5,000,000 Share premium 200,000 Retained Earnings 2,000,000 Market value of share on declaration date 75 Market value of share on distribution date 85 Treat each item independently: a. If the entity would declare a 1 for 5 share dividend, what amount would be charged to retained earnings? b. What amount will be credited to share premium if the entity would declare 15% share dividend?

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 38CE: Stockholder Payout Ratios The following information pertains to Milo Mindbender Corporation:...

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4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: e. If the entity would declare a 2 for 1 share split, How much would be the new par value?
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
2. An entity showed the following data:Share capital, par value P10, 25,000 shares issued 250,000Share Premium 50,000Retained Earnings 150,000Market value of share on declaration date 20Market value of share on distribution date 40a. If a 10% share dividend will be declared, what amount of retained earnings will be capitalized? Prepare the entries on declaration and distribution date.b. If a 25% share dividend will be declared, what amount will be charged to retained earnings? Prepare the entries on declaration and distribution date
You are given the following information: ordinary shares, P80,000 (P80par); Share Premium-Ordinary, 200,000; and Retained Earnings, P400,000.Assuming only one class of share, the book value per share is? a.P280 b. P680 c. P80 d. P400
The following share dividends were declared and distributed by Wendy Corp.: Percentage of ordinary share outstanding at declaration date 10 Fair value Par value P15,000 40,000 P10,000 30,800 28 What aggregate amount should be debited to retained earnings for these share dividends?
3. The following share dividends were declared and distributed by Party Company: Percentage of ordinary shares outstanding Market value Par value 10% 225,000 150,000 25% 600,000 450,000 How much should be debited to Retained Earnings at the time of declaration? Group of answer choices 600,000 675,000 750,000 825,000
A Ltd is acquiring B Ltd and will pay consideration totally through shares. The financial data of both companies are given below : A LTD B LTD PROFITS 800000 300000 NO.OF EQUITY SHARES 400000 200000 EPS 2 1.5 P/E RATIO 12 7 Calculate the following: 1. Market price of each company share? 2. Market Capitalization of each company 3. Find out the Exchange Ratio(Swap Ratio)
What is the par value per share? * Mars Corporation recorded the following joumal entry: Land Preference share capital Share premium-preference To record issuance of preference shores @120 Per share. 450,000 420,000 30,000
Use the method of comparable to calculate the value per share for company B. the below table shows us sales, earning, book value, and share capital Sales Earning Book value Share Capital Company A 22160 1952 16123 6050 Company B 26951 4262 12045 4744 Company C 306058 18396 72461 8970 The below table shows share price and par value for companies Company A Company B Company C Share price 0.470 ??? 2.190 Par value 0.100 1.000 0.100
What is the total amount of share premium to be reported by the surviving company?a. P1,000,000 c. P1,750,000b. P944,600 d. P1,400,000
How much was the gain or loss on the sale of CD shares? a. P1,100 gain b. P2,000 gain c. P15,000 loss d. P15,900 loss
(b) The owners' equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) Capital Surplus Retained earnings Total shareholder's equity RM30,000 RM285,000 RM648,100 RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners' equity account for Rantuil Utilities Berhad.