Reference no: EM132547018
Question - After formation on Aug. 1, 2018, the ledger accounts of the Myx Corporation have the following balances:
Ordinary Shares, P250 par, 50,000 shares authorized. = 1,513,000
Subscribed Ordinary Shares. = 80,000
Merchandise Inventory. =1,000,000
Organization Expense. = 30,000
Share Premium-Ordinary. = 60,000
Share Premium-Preference. =30,000
10% Noncumulative and Nonparticipating Preference Shares, P500 par, 5,000 shares authorized. = 250,000
10% Preference Shares Subscribed, P500 par. = 100,000
Subscriptions Receivable-Ordinary. = 41,000
Subscriptions Receivable-Preference. = 52,000
Required -
a. At what average price has ordinary shares been subscribed or issued?
b. Assume that no dividends are paid in the first year of the corporation's existence. What are the rights of the preference shareholders?
c. Assuming that all of the Share Premium-Ordinary was applicable to the ordinarys shares that have been subscribed but not yet issued, what was the subscription price per share of the ordinary shares subscribed?
d. Assuming that the board of directors declared no dividends in 2018, what amount would have to be paid the preference shareholders in 2019 before any dividend could be paid to the ordinary shareholders?