Entity A had 200,000 ordinary shares outstanding all throughout 20x1. In 20x2, share issuances occurred: On April 1, 20,000 shares were issued for cash. On September 30, a 10% bonus issue (share dividend) was declared. On November 1, a 2-for-1 share split was issued Entity A had

Entity A had 200,000 ordinary shares outstanding all throughout 20x1. In 20x2, share issuances occurred: On April 1, 20,000 shares were issued for cash. On September 30, a 10% bonus issue (share dividend) was declared. On November 1, a 2-for-1 share split was issued Entity A had

Name: Entity A had 200,000 ordinary sharesoutstanding all throughout 20x1.
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Description: Entity A had 200,000 ordinary sharesoutstanding all throughout 20x1. In 20x2,share issuances occurred: On April 1,20,000 shares were issued for cash. OnSeptember 30, a 10% bonus issue (sharedividend) was declared. On November 1, a2-for-1 share split

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entity A had 200,000 ordinary shares outstanding all throughout 20x1. In 20x2, share issuances occurred: On April 1, 20,000 shares were issued for cash. On September 30, a 10% bonus issue (share dividend) was declared. On November 1, a 2-for-1 share split was issued. Entity A had the following profits: P1,200,000 in 20x2 and P900,000 in 20x1. What are the earnings per share to be disclosed in Entity A's 20x1 comparative financial statements? O 2.02 O 2.05 O 2.09 2.12
During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net income through December 31, 20x1 was P102,500. On July 3, 20x2, the entity issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October 23, 20x2. The market value if the ordinary shares was P11 per share on the declaration date. The entity's net income for the year ended December 31 ,20x2 was P220,000. During 20x3, the entity had the following transactions: 1. In February, reacquired 9,000 of its ordinary shares for P9 per share. The entity uses the cost method to account for treasury shares. 2. In June, the entity sold 4,500 of its treasury shares for P13 per share. 3. In September, each shareholder was issued for each share held one (1) right to purchase two (2) additional ordinary shares for P13 per share. The rights expire on December 31, 20x3. 4. In October, 75,000…
During May 20x1, Yami, Inc. issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net income through December 31, 20x1 was P102,500.On July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October 23, 20x2. The market value if the ordinary shares was P11 per share on the declaration date. Yami’s net income for the year ended December 31 ,20x2 was P220,000.During 20x3, Yami had the following transactions:1. In February, Yami reacquired 9,000 of its ordinary shares for P9 per share. Yami uses the cost method to account for treasury shares.2. In June, Yami sold 4,500 of its treasury shares for P13 per share.3. In September, each shareholder was issued for each share held one (1) right to purchase two (2) additional ordinary shares for P13 per share. The rights expire on December 31, 20x3.4. In October, 75,000 rights issues were exercised when…
Abs Company had 20,000 ordinary shares outstanding on January 1 of the current year. On May 1, the entity issued 10,500 ordinary shares. Outstanding all year were 10,000 nonconvertible and noncumulative preference shares on which the annual dividend of P40 per share was paid in December. The net income for the current year was P967,000. What amount should be reported as basic earnings per share? 18.60 35.80 21.00 28.40
During May 1, 20x1, Yami Inc. issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net income through December 31, 20x1 was P102,500. On July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October 23, 20x2.The market value if the ordinary shares was P11 per share on the declaration date. Yami’s net income for the year ended December 31, 20x2 was P220,000. During 20x3, Yami had the following transactions: In February, Yami reacquired 9,000 of its ordinary shares of P9 per share. Yami uses the cost method to account for treasury shares. In June, Yami sold 4,500 of its treasury shares for P13 per share. In September, each shareholder was issued for each share held one (1) right to purchase two (2) additional ordinary shares for P13 per share. The rights expire on December 31, 20x3. In October, 75,000 rights issues were exercised when the…
Entity H issued 9,000 shares of its $1 par value common stock for $20 per share. Which of the following statements is correct? Hint: Make the journal entry first. Common stock should be credited for $180,000. Cash should be credited for $180,000. Paid-in-capital-in-excess-of-par-value should be debited for $171,000. Common stock should be credited for $9,000.
At the beginning of the current year, BFAR Corp. was authorized to issue 100,000 shares with P50 par value. During the year, the company had the following chronological transactions related to shareholders' equity: • Issued 10,000 shares at P70 per share • Issued 20,000 shares at P80 per share Reported net income of P1,239,000 . Declared and paid cash dividends of P394,000 . Declared a 10% share dividend. Fair market value on this date is P105 per share. . Distributed the share dividend. Fair market value on this date is P90 per share. • Purchased 3,000 treasury shares at P100 per share How much is the total shareholders' equity at year-end? ●
The following transactions were taken from BFAR Corporation: Authorized Ordinary share capital of 500,000 shares at P10 par value. • The total Subscriptions of equity shares is 120,000 shares at a subscription price of P15 per share Half of the total subscriptions were fully paid and Share Certificates have been issued. The balance of total subscriptions has P720,000 outstanding receivable. Compute the issued share capital. ● O 720,000 O 1,800,000 O 600,000 O 1,080,000
Cullumber Ltd. had the following share transactions during its first year of operations: Jan. 6 Issued 204.000 common shares for $1.60 per share. Jan. 12 Issued 51,000 common shares for $1.85 per share. Mar. 17 Issued 1,000 preferred shares for $105 per share. July 18 Issued 1,020,000 common shares for $2 per share. Nov. 17 Reacquired 204,000 common shares for $1.95 per share. Dec. 30 Reacquired 153,000 common shares for $1.80 per share. (a) Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round average per share to 2 decimal places). Journalize the transaction.
Pharoah Ltd. had the following share transactions during its first year of operations: Jan. 6 Issued 168,000 common shares for $1.50 per share. Jan. 12 Issued 42,000 common shares for $1.75 per share. Mar. 17 Issued 800 preferred shares for $105 per share. July 18 Issued 840,000 common shares for $2 per share. Nov. 17 Reacquired 168,000 common shares for $1.95 per share. Dec. 30 Reacquired 126,000 common shares for $1.80 per share. Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round average per share to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit…
Kremlin Company reported the following shareholders' equity at year-end: Share capital, P30 par value, P3,000,000; Share premium, P600,000; Retained earnings, P4,200,000. A 20% share dividend was declared and distributed at year-end when entity's share was selling at P65. What amount should be reported as share capital outstanding?
Firm A has a 20,000 authorized ordinary shares which have a par value of P15 per share. Initially, it issued 2,500 of its share for cash at P17.50 per share. On another day, it issued additional 1,750 shares at P18 per share. It has an income of P50,000, 64.30% of which is set aside for inventory build up. What is the upper limit of dividend per share can the BOD declare?