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Compute the legal capital

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Reference no: EM132558056

An examination of the ledger of LMN Corporation revealed the following balances on January 1, 2020.

Ordinary Share Capital, 50,000 shares authorized at par value of P100,

25,000 shares issued of which, 1,000 shares

are in the Treasury.... ......................................................P1,500,000

Ordinary Share Premium............................................................ 500,000

Appropriation reserve for Treasury shares.................................... 80,000

Retained Earnings.................................................................... 750,000

Treasury shares at cost, 1,000 shares.......................................... 80,000

The following transactions occurred during the year:

Jan. 10 Declared and paid 15% stock dividends on the shares outstanding to stockholders on record as of Mar 1.

The dividends will be distributed on Mar. 15, the fair market value on date was P115.

April 15. Reacquired 1,000 shares at P80 per share.

June 20, Declared a P20 cash dividend per share to stockholders of record as of July 31

July 15, Sold 500 treasury shares at P100 per share.

Required: Compute for the following:

Question 1. After considering Jan. 10 transaction only, How much is the revised total stockholders equity?

Question 2. Considering all the transactions, Compute the Legal Capital

Question 3. Considering all the transactions, Compute the Total number of shares entitled to dividends AS OF JULY 31?

Question 4. Considering all the transactions, Compute the total amount of cash dividend.

Reference no: EM132558056

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