BFAR Corporation has the following information in its shareholders' equity: • Ordinary Share Capital of P1,600,000 - P200 par value • Share Premium, P400,000 Accumulated Profits-Free of P900,000. Treasury shares of P440,000 (cost is P220 per share) ● . BFAR Corporation declared cash dividends of P3.00 per share on March 1, 2022, to shareholders on record on March 31, 2022, payable on April 30, 2022. Compute the Cash Dividends on March 1, 2022.

BFAR Corporation has the following information in its shareholders' equity: • Ordinary Share Capital of P1,600,000 - P200 par value • Share Premium, P400,000 Accumulated Profits-Free of P900,000. Treasury shares of P440,000 (cost is P220 per share) ● . BFAR Corporation declared cash dividends of P3.00 per share on March 1, 2022, to shareholders on record on March 31, 2022, payable on April 30, 2022. Compute the Cash Dividends on March 1, 2022.

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 5MCQ

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On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
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