Current Attempt in Progress On October 31, the equity section of Oriole AG consists of share capital-ordinary CHF560,000 and retained earnings CHF965,000. Oriole is considering the following two courses of action: (1) declaring a 10% share dividend on the 56,000, CHF 10 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF5 per share. The current market price is CHF15 per share.. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share. Equity Share capital-ordinary CHF Share premium-ordinary Retained earnings Total equity Outstanding shares Par value per share CHF CHF Before Action CHF CHF CHF After Share Dividend CHF CHF CHF After Share Split

Current Attempt in Progress On October 31, the equity section of Oriole AG consists of share capital-ordinary CHF560,000 and retained earnings CHF965,000. Oriole is considering the following two courses of action: (1) declaring a 10% share dividend on the 56,000, CHF 10 par value shares outstanding, or (2) effecting a 2-for-1 share split that will reduce par value to CHF5 per share. The current market price is CHF15 per share.. Prepare a tabular summary of the effects of the alternative actions on the components of equity, outstanding shares, and par value per share. Equity Share capital-ordinary CHF Share premium-ordinary Retained earnings Total equity Outstanding shares Par value per share CHF CHF Before Action CHF CHF CHF After Share Dividend CHF CHF CHF After Share Split

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5P: Alert Companys shareholders equity prior to any of the following events is as follows: The company...

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(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.
Current Attempt in Progress Covington Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. 4 Help Covington make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Before Action $1,366,000 $248,000 570,000 548,000 1,118,000 $ $ (1) After Cash Dividend $ $ (2) After Stock Dividend LA 10001
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
The owners’ equity accounts for Vase Corporation are shown here: Common stock (€3 par value) Capital surplusRetained earningsTotal owners’ equity €900,000 1,200,000 2,600,000 4,700,000 Instructions: 1. If the company’s stock currently sells for €58 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. 2. Assume that instead of a stock dividend, the company declares a three-for-one stock split. How the equity accounts will change? How many shares are outstanding now? What is the new par value per share?
Gender Corporation declared and issued a 6% share dividend on December 1. Prior to the declaration, Gender's retained earnings were P320,000, shares outstanding were 10,000, P2 par value, ordinary share with a current market value of P14 per share. Contributed capital will increase as a result of recording this share dividend byle sie Select the correct response: O P7,200 O PO O P8,400 O P1,200
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?
NEED ASAP. Solve correctly and show your computations. The H2 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary share capital, P20 par value, 20,000 shares outstanding Preference share capital, 5% P100 par value, cumulative and partially participating 4%, 2,000 shares outstanding No dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P180,000 was declared. How much dividends will be received by the preference shares holders?
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 of P900,000. ● A share dividend of 6% was declared when the share is selling at P500 per share. Compute the balance of Accumulated Profits after dividend declaration.
3. Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. How much is the dividends per share for he Preference Shares? a. P2.00 b. P0.50 c. P1.50 d. P0.20
CCC Company reported the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P50 par 2,000,000 Ordinary share capital, P100 par 4,000,000 Retained earnings (deficit) (900,000) No dividends have been paid on the preference share since 2018. Questions: 1. Assuming that the preference share has preference as to dividends, compute for the book value per ordinary share. 2. Assuming that the preference share has preference as to dividends, compute for the book value per preference share.
1. Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. What was the amount of dividends payable to ordinary share holders? a. P34,000 b. P47,500 c. P40,000 d. P10,0002. Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?Required to answer. Single choice. a. P125,000 b. P500,000 c. P600,000 d. P150,0003. On June 1, 2015, Golden Warriors Corporation declared a share capital dividend entitling its shareholders to one additional share for each share held. At…
Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.