Reference no: EM133123739
Question 1 - Chantal Corporation's Shareholder's equity for January 1, 2020:
Issued shares 100,000
Par value 10
Share capital 1,000,000
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 35.
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 50.
5. Net income is P1,500,000 and cash dividends declared is P352,500.
How much is Retained earnings - appropriated at year-end?
Question 2 - House of Armada Corporation's Shareholder's equity for January 1, 2020:
Issued shares 50,000
Par value 20
Share capital 1,000,000
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 62 per share.
Reissued shares of 3,000 for an amount of 75 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?
Question 3 - Angeline Corporation's Shareholder's equity for January 1, 2020:
Issued shares 100,000
Par value 20
Share capital 2,000,000
Share premium 2,500,000
Retained earnings 3,000,000
Total 7,500,000
During the year:
1. The entity reacquired its own shares of 5,000 at a cost per share of 30.
2. The entity issued additional shares of 10,000 shares for P255,200 cash consideration.
3. Reissue own shares of 3,500 for a per-share of 35.
4. Net income is P2,880,000.
5. Declared and paid cash dividends of P1,700,000
How much are the retained earnings unappropriated at year-end?
Question 4 - The shareholders' equity of Nicaragua Company are as follows:
Issued no. of shares 10,000
Par value 100
Share capital P1,000,000
Share premium 2,800,000
Retained earnings 3,675,300
Total P7,475,300
The reported net income for the year is P3,095,280.
The entity also declared the following dividends:
1. Dividends of P1,000,000 in cash.
2. Dividends of 1,000 shares of Nicaragua Company.
3. Dividends of 2,000 shares of Colombia Company.
The market value of Nicaragua shares
December 15 180
December 31 200
January 15 225
The Market value of Colombia shares
December 15 150
December 31 170
January 15 190
Dividends are declared every December 15 and paid every January 15 for shareholders as of December 31.
How much are the retained earnings on year-end?
Question 5 - 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?