Professional Documents
Culture Documents
E 9-1
Contributed Capital:
10% Preference Share Capital, P100 par, cumulative, 10,000 shares
authorized, 4,000 shares issued and outstanding P 400,000
Ordinary Share Capital, P20 par, 100,000 shares authorized,
50,000 shares issued and outstanding 1,000,000
Ordinary Share Capital Subscribed
10,000 shares
– 200,000
Preference Share Premium 150,000
Ordinary Share Premium 200,000
Total Contributed Capital P1,950,000
Retained Earnings 250,000
Equity Total Shareholders’ P2,200,000
E 9-2
Contributed Capital:
10% Preference Share Capital, P40 par, 40,000 shares authorized,
20,000 shares issued and outstanding P800,000
Preference Share Capital Subscribed P40,000
Less PSC Subscription Receivable 14,000 26,000
Ordinary Share Capital, P10 stated value, 500,000 shares authorized,
200,000 shares issued and outstanding 2,000,000
Paid-in Capital in Excess
Preference
of Par–Shares 120,000
Paid-in Capital in Excess of Stated
Ordinary
Value– Shares 100,000
Total Contributed Capital P3,046,000
Retained Earnings 400,000
Equity Total Shareholders’ P3,446,000
E 9-3
Mar. 1 Retained Earnings 400,000
Dividends Payable 400,000
40,000 sh x P10 = P400,000
E 9-4
Apr. 1 Retained Earnings 200,000
Dividends Payable 200,000
100,000 sh x P2
ChapterAPC – edition)
9 (2007 page 2
E 9-6
Mar. 15 Retained Earnings 10,000
Dividends Payable 10,000
2,000 sh x P5 = P10,000
E 9-7
Annual PSC dividend requirement– 100,000 sh x P100 x 12% = P1,200,000
1.
2007 2008 2009
Preference P1,200,000 P1,200,000 P1,200,000
Ordinary 1,300,000 2,300,000 5,300,000
Total P2,500,000 P3,500,000 P6,500,000
Dividends per share:
Preference P12.00 P12.00 P12.00
Ordinary P 2.60 P 4.60 P10.60
2.
Preference Ordinary Total
2007
Dividends in
2 yrs.
arrears – P2,400,000 P2,400,000
Current dividends 100,000 P ----------- 100,000
Total P2,500,000 P ----------- P2,500,000
2009
Regular dividends P1,200,000 P 600,000 P1,800,000
Balance –P4,700,000
10/15Preference – 3,133,333 3,133,333
5/15 Ordinary – 1,566,667 1,566,667
Total P4,333,333 P2,166,667 P6,500,000
2009
Regular dividends P1,200,000 P 600,000 P1,800,000
Balance –P4,700,000
Preference 800,000 800,000
Ordinary 3,900,000 3,900,000
Total P2,000,000 P4,500,000 P6,500,000
E 9-8
1. P2,500,000 / 200,000 shares P12.50
E 9-9
a. P10,000/60,000 = P.17
b. P70,000/60,000 = P1.17
c. P90,000/60,000 = P1.50
d. P150,000/60,000 = P2.50
e. P180,000/60,000 = P3.00
E 9-10
Profit P450,000
Less earnings identified with preference share capital 200,000
(20,000 sh x P100 x 10%)
Earnings identified with ordinary shares P250,000
P 9-1
1.
2009
Jan. 2 Cash 1,875,000
Ordinary Share Capital 1,250,000
Ordinary Share Premium 625,000
125,000 sh x P15
Ordinary Share
Ordinary Share Premium
Capital 625,000
625,000
ChapterAPC – edition)
9 (2007 page 14
Retained Earnings
Appropriated for contingencies P250,000
Appropriated for Bond Retirement 300,000
Total P550,000
Unappropriated 400,000 950,000
Equity Total Shareholders’ P3,500,000
Multiple Choice
1. B 4. C 7. B 10. B 13. C 16. A 19. A
2. B 5. A 8. C 11. A 14. D 17. B 20. D
3. B 6. A 9. D 12. D 15. B 18. C
TM 32
1. T 5. F 9. F 13. T 17. T
2. T 6. F 10. F 14. T 18. F
3. T 7. F 11. T 15. F 19. T
4. T 8. F 12. F 16. F 20. F
TM 33
1. Contributed capital 9. Small share capital dividend
2. Share Capital 10. Dividends in arrears
3. Share premium 11. Deficit
4. Liquidating dividend 12. Book value per share
5. Scrip dividend 13. Unappropriated Retained Earnings
6. Dividends 14. Retained Earnings
7. Appropriated Retained Earnings 15. Participating Preference Share Capital
8. Property dividend 16. Paid-in Capital from Stock Dividend
17. Carrying value
18. Stock Dividend Distributable
19. Stock Dividend
20. Earnings per share
TM 34
1. A 6. C 11. C 16. A 21. D
2. B 7. A 12. C 17. C 22. B
3. D 8. A 13. D 18. B 23. A
4. D 9. D 14. D 19. C 24. B
5. B 10. A 15. D 20. A 25. D
TM 35
1. C ABC – P5.00; DEF – P12.00
2. D P252,000 + P116,550 + P118,420 + P116,000 + P12,000 = P614,970
3. B P614,970 + P38,390 = P653,360
4. B 400 sh x P50 x 6% = P1,200
5. A PS = P48,000; CS – P180,000 – P48,000 = P132,000
6. A PS = P48,000 / 6,000 = P8.00; CS = P132,000 /12,000 = P11.00
7. B P801,400 – P601,100 = P200,300
8. B 60,000 x 40% x P20 = P480,000
9. C P20 x 40%
10. D
ChapterAPC – edition)
9 (2007 page 15
TM 36
1. P1,500,000 75,000 sh x P20
2. P750,000 75,000 sh x P10
3. P2,250,000 P1,500,000 + P750,000
4. P150,000 P500,000 – P350,000
5. P2,400,000 P2,250,000 + P150,000
6. P32 P2,400,000/75,000
7. P4.67 P350,000/75,000
8. P6.67 P500,000/75,000
TM 37
1. P4.00 P50 x 8%
2. P24,450,000 P450,000 + P16,000,000 + P8,000,000
3. 9,000 sh P450,000 / P50
4. 1,600,000 sh P16,000,000 / P10
5. P72,000 P450,000 x 8% x 2 years
6. P68 LV + Div. in arrears = P60 + (P4 x 2 years) = P68
7. P16.67 [P21,450,000 – (9,000 x 68)]/ 1,600,000 sh
TM 38
Year Share
capital Case1 Case 2 Case 3 Case 4