Professional Documents
Culture Documents
Data Processing, Manipulation of Data by A Computer. It Includes The Conversion of Raw Data To
Data Processing, Manipulation of Data by A Computer. It Includes The Conversion of Raw Data To
There were no dividends in arrears for preference shares. During 2021, the following events
occurred:
a. Earnings during 2021 total P6,000,000. The board of directors declares a cash dividend
totaling P2,800,000 to be paid as appropriate and ordinary shareholders. Later, a share
dividend of 10 percent is declared on ordinary shares. The market value of ordinary
share is P68 per share on the date the share dividend is declared.
b. In order to familiarize shareholders with on the company’s new products, the board
declares a property dividend of one ounce of new perfume the company produces for
every ordinary share outstanding (before the above share dividend). The cost of the
perfume if P6 per ounce, and the product has a wholesale market value of P10 per
ounces. Any gain or loss on this transaction is already included in the earnings reported
above.
c. At the end of 2021, the board declares a three-for-two share split. With the split, the
number of ordinary shares authorized to be issued is increased to 1,500,000. At the date
of the share split, the marked value of ordinary share is P75 per share.