Reference no: EM133170817

Intermediate Accounting Questions -

Q1. Bliss Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 on January 1, 20x1. During the year, Bliss Co. acquired 2,000 treasury shares at P18 per share and reissued them at P22 before year-end. Bliss Co. earned profit of P2,260,000 in 20x1. On December 31, 20x1, Bliss Co. declared P8 cash dividends per share and "1 for-20" stock dividends, both to be distributed on February 1, 20x2. The fair value per share on Dec. 31, 20x1 was P22. What amount of retained earnings should Bliss Co. report on December 31, 20x1?

Q2. On Jan. 1, 20x1, Expertise Co. had 100,000 outstanding (P par) ordinary shares. The following transactions occurred during 20x1: May 21, 20x1 Reacquired 2,000 treasury shares at P16 per share July 20, 20x1 Issued 30,000 new shares at P17 per share. Sept. 21, 20x1 Declared a "2-for-1" stock split Reissued 1,000 treasury shares at P9 per share. Oct. 5, 20x1 Dec. 19, 20x1 Declared cash dividends of 13 per share and 2 stock dividends. The fair value per share was PS What total amount is debited to retained earnings on Dec. 19 20x1?

Q3. On April 1, 20x1, Heritage Co. declared 50% scrip dividends to its 18,000 outstanding (P100 par) ordinary shares. The scrip dividends bear a 10% per annum interest rate and are payable on August 31, 20x1. What total amount of cash is paid to the shareholders on August 31, 20x1?

Q4. Hard Co. declared as property dividends inventories with carrying amount of P2,000,000. The inventories have fair values of P2,200,000 on declaration date and P2,400,000 on distribution date. The fair values approximate the net realizable values. How much is the gain (loss) recognized in profit or loss on distribution date?