Reference no: EM132601187

Illustration: The stockholders equity at metro cebu central chemicals, incorporated on December 31, 2006 appeared as follows:

Common stock, authorized 3000 shares par value P100.

Issued 1000 shares of which 200 shares are in the treasury 100,000

Appropriated for retained earnings 20,000

Free or Unappropriated 60,000 80,000

Total contributed capital and retained earnings 180,000

Less:

Cost of treasury stock 20,000

Total stocksholders equity 160,000

Question 1: How many shares are still unissued?

Question 2: How many shares are outstanding?

Question 3: How much amount of retained earnings that can be available for dividend declaration?

Question 4: If a 10% stock dividend is declared, how many shares of stock will be taken out from the unissued shares?

Question 5: How much amount of the reatined earnings account will be capitalized on a 10% stock dividend declared?

Question 6: After the declaration of stock dividends, the total stockholders equity will show an amout of?

Question 7: Assuming that the 200 shares in the treasury will be sold at P105 per share, how much amount will be credited to Additional Paid in- treasury stock account?

Question 8: Assuming that a 20% cash dividend is declared instead of a 10% stock dividend, how much is the amount of cash dividends payable to stockholders on record?

Question 9: (Refer to data 8) after the declaration of 20% cash dividend, how much is the balance of the retained earnings account?