The Topeka Corporation has 40,000 shares of P30 par value ordinary shares outstanding. On July 1, the corporation declared a stock dividend payable July 31, 2021, to ordinary shareholders of record on July 20, 2021, at the rate of one new share of common stock for each ten shares held. The estimated market value of the ordinary shares of stock is P36 per share. On the date of stock dividend distribution, Select the correct response: O Ordinary Share Capital was credited for P120,000 O Retained Earnings was debited for P120,000 O Ordinary Snare Dividends Distributable was credited for P144,000 O Retained Earnings was debited for P144,000 ( Previous Continue >

The Topeka Corporation has 40,000 shares of P30 par value ordinary shares outstanding. On July 1, the corporation declared a stock dividend payable July 31, 2021, to ordinary shareholders of record on July 20, 2021, at the rate of one new share of common stock for each ten shares held. The estimated market value of the ordinary shares of stock is P36 per share. On the date of stock dividend distribution, Select the correct response: O Ordinary Share Capital was credited for P120,000 O Retained Earnings was debited for P120,000 O Ordinary Snare Dividends Distributable was credited for P144,000 O Retained Earnings was debited for P144,000 ( Previous Continue >

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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How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating?
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Queenstown Corporation issues 4,000, $4 cumulative preferred shares at $80 each and 12,000 common shares at $18 at the beginning of 2022. Each preferred share is convertible into four common shares. During the years 2022 and 2023, the following transactions affected Queenstown Corporation's shareholders' equity accounts: 2022 Dec. 10 Declared and paid $12,000 of annual dividends to preferred shareholders. 2023 Dec. 10 Dec. 21 Required: a) b) Declared and paid the annual dividend to preferred shareholders and a $4,000 dividend to common shareholders. The preferred shares were converted into common shares. Journalize each of the 2022 and 2023 transactions. After the preferred shares are converted, what is the total number of common shares issued?
On October 1, 2021 Chief Corporation declared and issued a 10% stock dividend. Before this date, Chief had 80,000 shares of $5 par common stock outstanding. Te of Chief Corporation on the date of desiaration was $10 per share. As a result of this dividend, Chief's retained earnings will
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