Reference no: EM132493620

The capital structure of Red Ribbon Corporation on December 31, 2015 follows: Preference 12% Share Capital, P200 par, 30,000 shares issued and outstanding P6,000,000 Ordinary Share Capital, P50 par, 100,000 shares Issued and outstanding 5,000,000 Share premium - preference 1,800,000 Share premium - ordinary 1,500,000 Retained Earnings 2,200,000

During 2016, the following selected transactions occurred:

a. Purchased and retired 4,000 preference shares at P280 per share.

b. Purchased 8,000 shares of its own ordinary share at P80 per share.

c. A 2 for-1 share spit on the ordinary share was approved by the shareholders, thereby reducing the par value to P25.

d. Reissued 6,000 treasury shares at P45 each.

e. Shareholders donated 4,000 ordinary shares when the market price was P46 per share.

f. Two thousand of the donated shares were issued for P48 per share

g. Declared the annual dividends on the preference share and P1 per share dividend on the ordinary share.

h. The profit for 2016 was P2,000,000.

REQUIREMENT:

Question 1: Determine the following at December 31, 2016 -

1. Number of preference share issued

2. Number of preference shares outstanding

3. Number of ordinary shares issued

4. Number of ordinary shares outstanding

5. Cost of remaining treasury shares (acquired by purchase)

6. The amount of total dividends declared during the year.

7. Total shareholders' equity.