BM1705

Name 1: DATE: SCORE:

Name 2:
Name 3:
Name 4:
Name 5:
Name 6:
Name 7:
Name 8:
Name 9:
Name 10:

Accounting for Dividends (30 points: 6 items x 5 points)

Mac Corporation’s share capital accounts on December 31, 200C showed the following:

12% Preference Share Capital, par P100, authorized 10,000 shares, and issued 4,000 shares P 400,000
Ordinary Share Capital, par P30, authorized 100,000 shares, and issued 20,000 shares P 600,000

On this date, the Board of Directors declared cash dividends of P260,000. No dividends were declared since
200A.

Compute the dividends per share for each class of share capital assuming that the preference share is:
a. Non-cumulative and non-participating

b. Non-cumulative and fully participating

c. Cumulative and non-participating

d. Cumulative and fully participating

e. Cumulative and participating only up to 15%

f. Cumulative and participating only after common gets 20%.

Rubric for Grading:

CRITERIA POINTS
Complete solution with correct answer 5
Last two (2) major steps of the solution are incorrect 4
Half of the solution is correct 3
First two (2) major steps of the solution are correct 2
First major step of the solution is correct 1

Reference:
Abeleda, N. S. (2012). Simplified accounting for partnership and corporation. Parañaque: Nelson Publications.

07 Activity 3 *Property of STI

Page 1 of 1