Reference no: EM133129638
Question 1 - Mona Grudt Corporation's Shareholder's equity for December 31, 2020:
Issued shares 8,000
Par value P50
Share capital P400,000
Share premium 750,720
Retained earnings 1,825,000
Total P2,975,720
Transactions during 2021 are as follows:
1. Acquired 1,000 delinquent shares at P75 per share.
2. Reissue 800 of its shares for P85 per share.
3. Enlisted in the PSE:
Share listing fee P87,500
Share issuance fee P128,900
Total cost P216,400
The entity reported a net income of P975,000.
How much is the share premium at year-end?
Question 2 - The shareholders' equity of the New Zealand Company are as follows:
Issued no. of shares 10,000
Par value 100
Share capital P1,000,000
Share premium 2,800,520
Retained earnings 3,200,000
Total P7,000,520
The reported net income for the year is P2,500,000.
The entity also declared the following dividends:
1. Dividends of P1,500 in cash
2. Dividends of 1,500 shares of New Zealand Company.
3. Dividends of 1,000 shares of Colombia Company
The market value of New Zealand shares
December 15 P200
December 31 P200
January 15 P240
The market value of Colombia shares
December 15 P180
December 31 P200
January 15 P225
Dividends are declared every December 15 and paid every January 15 for shareholders as of December 31.
How much is the share premium at year-end?
Question 3 - Denmark Corporation had ordinary shares of 100,000 outstanding on January 1.
In March, the entity distributed 15% share dividends.
In June, the entity distributed 10% share dividends.
In July, the entity reacquires 10,000 as treasury shares. On December 31, the entity had a 2 for 1 share split up.
How many ordinary shares are outstanding at year-end?
Question 4 - The related data of Paraguay Company:
The par value is P50. The authorized shares are 200,000.
Received 1st subscription of 50,000 shares at P75 per share.
Received 2nd subscription of 10,000 shares at P80 per share.
Issued shares of 25,000 for cash at P70 per share.
Received payment for the 1st subscription amounting to P1,125,000.
Received full payment for the 2nd subscription amounting to P800,000.
How much is the share capital?
Question 5 - Chantal Corporation's Shareholder's equity for January 1, 2020:
Issued shares 100,000
Par value P10
Share capital P1,000,000
Share premium 2,000,000
Retained earnings 3,200,000
Total 6,200,000
During the year:
1. The entity acquired its own shares of 5,000 at a cost per share of P35.
2. Appropriate P900,000 of an investment fund for the working capital requirement.
3. Restrict retained earnings of P750,000 as appropriation for future building expansion.
4. Reissue own shares of 2,500 for a per-share of P50.
5. Net income is P1,500,000 and cash dividends declared is P352,500.
How much is Retained earnings - appropriated at year-end?
Question 6 - House of Armada Corporation's Shareholder's equity for January 1, 2020:
Issued shares 50,000
Par value P20
Share capital P1,000,000
Share premium 1,200,000
Retained earnings 3,750,200
Total 5,950,200
During the year, the following transactions occur:
Acquired entity's shares of 6,000 shares at P62 per share.
Reissued shares of 3,000 for an amount of P75 per share.
Retire 3,000 treasury shares.
Net income is P1,050,700 and declared cash dividends amounting to P526,980.
How much are the retained earnings at year-end?