ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021,respectively. The company has not paid any other dividends since its organization on January1, 2019. the outstanding shares are 40,000, 12% preference shares, par P100 and 60,000ordinary shares, par P100.If preference share are noncumulative and nonparticipating, preference and ordinary,respectively will receive in 2020: *P300,000 and P100,000O P200,000 and P200,000P400,000 and P-0-P320,000 and P80,000

Formula: Preferred dividend = Total Preference shares x PAR Value x Preferred rate.

Answered: ABC Company paid dividends of P400,000…

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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In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the entity reacquired 2,000 shares at P150 per share and immediately canceled these 2,000 shares. In connection with the retirement of shares, what amount should be debited to Share Premium, and Retained Earnings, respectively?in 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the entity reacquired 2,000 shares at P150 per share and immediately canceled these 2,000 shares. In connection with the retirement of shares, what amount should be debited to Share Premium, and Retained Earnings, respectively?

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