Reference no: EM133051031
Problem 1 - Data relating to the shareholders' equity of Charlene at yearend follows:
Ordinary share capital, P50 par 10,000,000
Subscribed ordinary share 1,000,000
Share premium 2,500,000
Subscription receivable (1,200,000)
Retained Earnings 4,900,000
Revaluation surplus 620,000
Unrealized loss on FVOCI securities (400,000)
Treasury shares, 20,000 shares (1,200,000)
Required - Compute the book value per share.
Problem 2 - Data relating to the shareholders' equity of Charlene at yearend follows:
10% Preference Share, P100 par 5,000,000
Ordinary share capital, P50 par 10,000,000
Subscribed ordinary share 1,000,000
Share premium 2,500,000
Subscription receivable (1,200,000)
Retained Earnings 6,900,000
Revaluation surplus 620,000
Unrealized gain on FVOCI securities 400,000
Treasury shares-OS, 20,000 shares (1,200,000)
Dividends are in arrears for 2 years.
Required - Compute the book value per share of ordinary and preference share under each of the following conditions with respect to preference shares:
1. Noncumulative and non-participating
2. Cumulative and non-participating
3. Cumulative and fully participating
4. Cumulative and participating up to 15%
5. Cumulative and non-participating and the PS has a liquidation value of P110 per share
Problem 3 - Data relating to the shareholders' equity of Chloe at yearend follows:
8% Preference share, P400 par 5,000,000
Ordinary share, P40 par 3,000,000
Retained earnings 7,000,000
Dividends are in arrears for 4 years.
Required - Compute the book value per share per preference and ordinary shares assuming the preference shares is:
1. Cumulative and non-participating
2. Cumulative with a liquidation value of P420 per share
3. Cumulative and fully participating
Problem 4 - Data relating to the shareholders' equity of Chloe at yearend follows:
8% Preference share, P100 par 4,000,000
Ordinary share, P40 par 1,040,000
Treasury Shares-OS, 1,000 shares (70,000)
Retained earnings 7,000,000
Dividends are in arrears for 4 years.
Required - Compute for the book value per share per preference and ordinary shares assuming the preference shares is:
1. Cumulative and non-participating
2. Cumulative with a liquidation value of P105 per share
3. Cumulative and fully participating
Problem 5 - On January 1, 2018, Clement Company had an ordinary share capital of 400,000 authorized shares with P20 par value of which 200,000 shares were issued and outstanding. The shareholders' equity on January 1 showed the following balances:
Ordinary Share Capital P 4,000,000 Share Premium 600,000 Retained Earnings 1,500,000 Transactions related to shareholders' equity during the year follows:
1. On January 5, the entity authorized 500,000 9% cumulative preference share with a par value of P40 per share. Among this share, Clement issued at P50, 100,000 shares. Each preference share is convertible into 2 ordinary shares.
2. On February 1, Clement reacquired 1,000 ordinary shares at P30 per share.
3. On April 30, Clement sold 25,000 ordinary shares at P35 per share.
4. On June 18, Clement declared a cash dividend of P2 per ordinary shares payable on June 30 for record on June 20.
5. On November 20, Clement sold 500 treasury shares for P40 per share.
6. On December 15, the entity declared the dividend for the preference shares payable on January 30, next year to record on December 20.
7. The net income for the current year was P850,000.
Required - Show Journal entries then compute for the book value per share of Clement Company at yearend.
Problem 6 - Note: this problem is a continuation of problem 3. Use the ending balance of problem 5 as your beginning balance for this problem.
Transactions for 2019 follow:
1. 1,000 preference shares issued last year was converted into ordinary shares on January 5.
2. Paid dividend of preference declared last year.
3. Reacquire and retired 500 ordinary shares issued on April 30 last year at P40 per share on February 10.
4. Declared 2 for 1 split on March 1.
5. On April 15, Clement issued 1,000 ordinary shares at P30 per share.
6. Declared P500,000 cash dividends for preference and ordinary shares on December 1, to be paid on December 20, and record on December 15.
7. Net income for the period amounted to P1,250,000.