Guimba Corporation has the following data on stock issued and outstanding on December 31, 2020: 10% Preference share, P10 par 450,000 Ordinary share capital, P10 par 300,000 Retained earnings 450,000 Dividends were in arrears for 2 years, excluding the current year. The Board of Directors declared P300,000 cash dividends. Assume that the preferred share is non-cumulative and participating. The ordinary dividend per share is? A. 1 В. 4 C. 3 D. 2

Guimba Corporation has the following data on stock issued and outstanding on December 31, 2020: 10% Preference share, P10 par 450,000 Ordinary share capital, P10 par 300,000 Retained earnings 450,000 Dividends were in arrears for 2 years, excluding the current year. The Board of Directors declared P300,000 cash dividends. Assume that the preferred share is non-cumulative and participating. The ordinary dividend per share is? A. 1 В. 4 C. 3 D. 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary…

A: The shareholders holding preferred class of stocks are called preference shareholders of the…

Q: The H2 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary…

A: Preferred shares are paid dividend each year but often they are not paid each year but remaining…

Q: ABC has the following share capital outstanding during 2021 and 2022: Preference shares P100 par,…

A: EPS = (net income - preferred dividends)/no. of ordinary shares outstanding

Q: GHI Co. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000…

A: Dividend per share is computed as the total dividend paid divided by the number of shares…

Q: Andromeda Corp. reported the following shareholders’ equity on December 31, 2023: 12% cumulative…

A: Solution:The book value per preference share :First we calculate cumulative dividend arrears…

Q: ABC has the following share capital outstanding during 2021 and 2022: Preference shares, P100 par,…

A: Cumulative Preference shares are one of the type preference shares. These shares carry preference…

Q: Below is the Shareholders ' equity of Dexter Co. on Dec. 31, 2020: 12 % Preference Capital , P100…

A: The company can raise its capital by issuing the share, or debts. The shareholders' of the company…

Q: The following information was extracted from MSU Inc.'s 2020 annual report: Common stock -100…

A: Earnings per share (EPS) can be defined as the ratio of total net income available for common…

Q: GHI Co. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000…

A: Dividend per share is computed as the total dividend paid divided by the number of shares…

Q: ABC Corp has cumulative 10% has 10,000 preferred shares at par value $30 and also has 15,000 common…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Skysong Inc. has 2000 shares of 3%, $100 par value, cumulative preferred stock and 50000 shares of…

A: DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…

Q: Empirana, Inc. earned P960,000.00 in a year. The management declared a dividend of P3.50 per share…

A: The retained earnings during the year increase by the amount of profit after deducting the dividends…

Q: Hoseok Corporation has the following data on stock issued and outstanding at December 31, 2020: >10%…

A: Annual Dividend to Preferred shareholders = Preference Share Capital x rate of dividend = P400,000 x…

Q: Question 3. On December 31, 2020, Adelphi Corporation has outstanding 500 shares of $100 par value,…

A: Preferred stock means the amount raised against which dividend is given to stock holder but after…

Q: Preference share capital, P100 par, 30,000 shares 3,000,000 Ordinary share capital, P50 par, 100,000…

A: In this question, we will calculate the basic earnings per ordinary share and the basic earnings per…

Q: Ng Company had 34 million shares of $2 par common stock outstanding on January 1, 2024 in October…

A: The dividend is a method of distributing profits among shareholders. Shareholders have the…

Q: The total dividends to be given to preferred stock, if preferred stock is 5 points cumulative and…

A: Annual Dividend to Preferred shareholders = Preferred share capital x rate of dividend = P100000 x…

Q: Camille issued and outstanding share capital throughout the period consists of 500,000 ordinary…

A: After distributing the net income to the preference shareholders whatever has been left is divided…

Q: Below is the Shareholders' equity of Dexter Co. on Dec. 31, 2020: 12% Preference Capital, P100 par…

A: The book value per ordinary share is calculated by dividing the equity available to shareholders by…

Q: entity provided ing equity balance 10% preference share capital, 30,000 shares, par P100 Ordinary…

A: Book value per preference = Call price or Par preference value + Arrears of preference dividend /…

Q: The H2 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary…

A: *Preference shares are of nine types, one of them is Cumulative and participating preference shares.…

Q: Kingdom Corporation has the following. Preferred stock, $10 par value, 9%, 50,000 shares issued In…

A: The dividend is the return to the shareholders for their investment in the company. It is…

Q: The owners' equity accounts for Vulcano International are shown here: $ 80,000 200,000 660,000 $…

A: Common stock = $80,000 Par value = $1 Current stock price = $47 Stock dividend = 8% Therefore…

Q: The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100…

A: Annual preference dividend=Amount of preferred stock×6%=100,000×6%=P 6,000

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Guimba Corporation has the following data on stock issued and outstanding on December 31, 2020:
10% Preference share, P10 par
450,000
Ordinary share capital, P10 par
300,000
Retained earnings
450,000
Dividends were in arrears for 2 years, excluding the current year. The Board of Directors declared P300,000 cash dividends. Assume that the preferred
share is non-cumulative and participating. The ordinary dividend per share is?
A. 1
В. 4
С. 3
D. 2

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

State the stockholder’s equity of the Alphabet Corporation if it has a current net profit of $1,500,000, beginning-of-the-period retained earnings of $3,675,000, 1 million shares of common stock issued at a par value of $1 per share, and paid-in capital in excess of par of $12.50 per share?
The following information relates to X, Y, and Z as at 30 June 2021 Stock Share price Number of shares X 10 2,000,000 Y 15 6,000,000 Z 20 10,000,000 During the year the following activities occurred; A two for one stock split on Y Payment of 10% dividend on Z. It can be assumed that the entire dividend paid will be reinvested in shares of Z limited. On 30 June 2022 the stock prices of X, Y and Z were sh 12, sh 10 and sh 20 respectively. Required; New index value given that the beginning value index is 100. Explain how secondary markets benefit investors. State and explain the main risks faced by financial institutions in the course of conduct of their business.
PROVIDE COMPUTATION
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.
refer to the photo
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
f
Suppose a corporation has the following shares outstanding: 1. $800,000 in 6% Preferred Stock ($100 par value) 2. $3,200,000 in Common Stock ($10 par value) No dividends were declared for the years 2020 and 2021. Two scenarios are presented below and each is independent of each other. Scenario 1: As of December 31, 2022, a dividend of $250,000 is declared. Indicate the amount that the preferred shareholders will receive if the share is cumulative and non-participating (cumulative and non-participating). Answer: Scenario 2: As of December 31, 2022, a dividend of $800,000 is declared. Indicate the amount that the preferred shareholders will receive if the share is cumulative and non-participating up to 11% in total (cumulative and non-participating). Answer:
The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary share capital, P20 par value, 20,000 shares outstanding Preference share capital, 5% P100 par value, non-cumulative and fully participating, 2,000 shares outstanding No dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P210,000 was declared. How much dividends will be received by the preference shares holders?
The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary share capital, P20 par value, 20,000 shares outstanding Preference share capital, 5% P100 par value, non-cumulative and fully participating, 2,000 shares outstanding No dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P210,000 was declared. How much dividends will be received by the preference shares holders? *
Consider the following data: Amount ($) 400,000 900,000 Retained earnings 5,000,000 TOTAL OWNERS’ EQUITY 6,300,000 Common stock ($1 par value) Capital surplus Current market price of shares = $51 per share. What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.