Reference no: EM132464922

Problem - The integrity corporation was incorporated on January 1, 2019 with authorized capital of 100,000 shares of 100 par value 10% preference share capital and 200,000 shares of 100 par value ordinary share capital. The shares were issued during the year 2019 as follows:

January 15. Issued for cash 50,000 preference shares at 120.

January 20. Subscribed ordinary shares at par value and paid 1,250,000.00 balance was paid on February 20.

During 2019, the following are the corporate affairs of the company:

Revenues - 2,325,000

Direct Cost - 500,000

Gross Profit - 1,825,000

Admin Expenses - 130,000

Selling Expenses - 120,000

Tax Expense-- 75,000

Net Income -1,500,000

On year 2020 the Integrity corporation was blessed. The company decided to declare and paid a cash dividend to its stockholders. Income earned is 150,000 more than the last year's income.

On year 2021 the integrity corporation sustained a loss due to economic recession. Net Ioss is 500,000 for the year.

On year 2022, there was an economic turnover that reverses the loss sustained by the company from last year. This year, the company earned a 2,000,000 of net income. The Company decided to declare and pay cash dividend to its stockholders.

QUESTIONS -

1. How much is the Stockholders equity at December 31, 2019?

2. How much is the preferred stock at December 31, 2019?

3. How much is the Ordinary Shares subscribed at December 31, 2019?

4. How much is the balance of Subscription Receivable at December 31, 2019?

5. How much is the total preference and ordinary shares premium at December 31, 2019?

6. Compute for the preferred dividend for the year 2020 if the preference share are cumulative and fully participating.

7. Compute for the ordinary dividend for the year 2021 if the preference share is cumulative and fully participating.

8. Compute for the preferred dividend for year 2022 if the preference share are non cumulative and non participating.

9. Compute for the ordinary dividend for year 2022 if the preference share is non cumulative and non participating.

10. Compute for the preferred dividend for year 2022 if the preference share are cumulative but not participating 11.