Reference no: EM132797917
Question - APEX Mining Company, Inc. has the following capital structure at the beginning of 2026. 6% Cumulative, fully participating, preferred stock, P50 par value, 50,000 shares authorized P 600,000
Common stock, P10 par value, 200,000 authorized 1,475,000
Additional paid-in capital in excess of par - preferred 180,000
Additional paid-in capital in excess of par - ordinary 1,180,000
Retained earnings (P2,500,000 appropriated for plant expansion) 4,500,000
TOTAL P7,935,000
During 2026, the following transactions occurred:
February 11 APEX Mining Company acquired 6,000 preferred shares at P70 each 40,000 common shares at P22 each.
March 31 Issued 2,000 preferred treasury shares at P73 per share.
April 7 Issued 15,000 ordinary shares at P25 per share.
July 1 Issued 1,500 preference treasury shares at P68 each and 20,000 or treasury shares at P19 each.
August 15 Retired the remaining preference and ordinary treasury shares.
September 1 Plant expansion was completed.
November 22 Board of directors appropriated P2,000,000 for plan expansion. Likewise, the Board issued 3-year, 10% P1,500,000 face value bond to partially fund the construction. A sinking fund was setup for the extin of the bonds at their maturity.
December 31 Net income for the period P1,400,000. Total cash dividend declared P500,000. No dividends have been declared in 2025. A property dividend likewise declared, the distribution of which is on January 6, 2027. The amount of the property declared as dividend was P800,000; the fair which was P1,000,000.
Find the amount of cash dividends to be distributed to the ordinary shareholders and the total stockholders' equity at December 31, 2026?