Below is the Shareholders' equity of Dexter Co. on Dec. 31, 2020: 12% Preference Capital, P100 par 14% Preference Capital, P300 par Ordinary share capital, P100 par Retained Earnings P2,000,000 3,000,000 5,000,000 2,240,000 Share Premium 1,500,000 The 12% preference share is cumulative while the 14% preference share is participating. Dividends have not been paid for 3 years. What is the book value per ordinary share?
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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.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.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.
- PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is noncumulative and nonparticipating, compute for the book value per ordinary share. 2. Assuming that the preference share is noncumulative and nonparticipating, compute for the book value per preference share.LABAN Company provided the following shareholders’ equity on December 31, 2020:Preference share capital, 12% P100 par1,000,000Ordinary share capital, P1004,000,000Share premium2,000,000Retained Earnings1,000,000Dividends have been paid on the preference share up to December 31, 2017.Required:Compute the book value per ordinary share and per preference share under each of thefollowing conditions with respect to preference share:a) Cumulative and fully participatingb) Cumulative and fully participating after ordinary share receives 15%c) Cumulative and participating up to 16%d) Cumulative and non-participatinge) Noncumulative and non-participatingBelow is the Shareholders ' equity of Dexter Co. on Dec. 31, 2020: 12 % Preference Capital , P100 par 14 % Preference Capital , P300 par Ordinary share capital , P100 par Retained Earnings P 2,000,000 3,000,000 5,000,000 2,240,000 1,500,000 Share Premium The 12% preference share is cumulative while the 14 % preference share is participating . Dividends have not been paid for 3 years. What is the book value per ordinary share?
- LABAN Company provided the following shareholders’ equity on December 31, 2020:Preference share capital, 12% P100 par1,000,000Ordinary share capital, P1004,000,000Share premium2,000,000Retained Earnings1,000,000Dividends have been paid on the preference share up to December 31, 2017.Required:Compute the book value per ordinary share and per preference share under each of thefollowing conditions with respect to preference share:d) Cumulative and non-participatinge) Noncumulative and non-participating1. 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…PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is cumulative and nonparticipating, compute for the book valueper ordinary share. 2. Assuming that the preference share is cumulative and nonparticipating, compute for the book value per preference share.
- PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is cumulative and participating up to 16%, compute for the book value per ordinary share. 2. Assuming that the preference share is cumulative and participating up to 16%, compute for the book value per preference share.PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is cumulative and fully participating, compute for the book value per ordinary share. 2. Assuming that the preference share is cumulative and fully participating, compute for the book value per preference share.Sabo Company reported the following shareholders’ equity at year end:6% noncumulative preference share share capital, P100 par,Liquidation value of P105 per share 1,000,000Ordinary share capital, P100 par 3,000,000Retained earnings 950,000Preference dividends have been paid up to December 31, 2020. What is the book value per ordinary share?