What should be the balance in the share premium immediately

Assignment Help Accounting Basics
Reference no: EM132466965

Problem 1: Effective December 31, 2011, the shareholders of Rap Company approved a two-for-one split of the entity's share capital, and an increase in entity's share capital and an increase in authorized shares from 100,000 shares (par value P20) to 200,000 sahres (par value P10).

Rap's shareholders' accounts immediately before issuance of the split shares were as follows:

Share capital, par value P20; 100,000 shares authorized; 50,000 sahres outstanding P1,000,000

Share premium                      P150,000

Retained Earnings                  P1,350,000

Question 1: What should be the balance in the share premium immediately after the share spit is effected?

Reference no: EM132466965

Questions Cloud

What is the cost of common equity assuming a tax rate : If the WACC is 16.5%, and the pretax cost of debt is 8%, what is the cost of common equity assuming a tax rate of 40%?
What amount should be reported as dividends : In the statement of changes in equity for 2011, what amount should be reported as dividends?Iana Company had 10,000 shares issued and outstanding on January 1
Market values and the firm tax rate : Maria Garcia has just joined Ultrama as a junior analyst. Her boss has asked her to calculate what the weighted-average cost of capital for the firm
Project and still earn its required rate of return : If the firm's WACC is 12.0%, its debt-to-equity ratio is 1.33, and its return on equityis 19%.
What should be the balance in the share premium immediately : What should be the balance in the share premium immediately after the share spit is effected?Rap's shareholders' accounts immediately before issuance
What is the market value of the firms equity : What is the market value of the firms equity, debt and the firm? firm value= MV of equity + MV of debt
What is the book value per share : Novarest has a book value per share of equity of $1.5 million in net common equity, $50,000 in authorized share capital, 30,000 shares issued
How many ordinary shares were outstanding : Lovelyn purchased 75,000 ordinary shares to be held in treasury. On December 31, 2011, how many ordinary shares were outstanding?
Find the market value and book value of company : If Ray's Records' cost of capital is 15%, find the market value and book value of his company.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Development and implementation of an epossystem

Prepare a report for the management board of RTY plc on the development and implementation of an EPOSsystem.

  Pro forma income statement and balance sheet

the income statement and balance sheet for Blue Bill Corporation for 2013. Based on the historical statements and the additional information provided, construct the firm's pro forma income statement and balance sheet for 2014.

  What are two major types of qualified pension

What are two major types of qualified pension? What are the policy reasons for the advantages of qualified retirement plans?

  Common size comparative balance sheet

Using vertical analysis, prepare a common size comparative balance sheet.

  Discuss voluminous transactions taking place

Over the year there would be voluminous transactions taking place in a different chronological order

  What is timons basis in the note receivable

What is Timon's basis in the note receivable at the end of Year 2

  Evaluate prepaid expense and unearned revenue

Amounts paid on June 30 for a 1-year insurance policy, Professional fees earned but not billed as of June 30

  The wholesale cost of the fryers

The current price for whole fryers is $.89 per pound. The proposal is to set a promotional price of $.59 per pound. The wholesale cost of the fryers, prepackaged and ready for sale, is $.55 per pound.

  Feng company installs a computerized manufacturing machine

feng company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of

  What is colin after-tax cost of this alimony payment

How much alimony must Coleen receive to have $20,000 after taxes? What is Colin's after-tax cost of this alimony payment

  Problem related to evaluation of corporate performance

The Final Project will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a repo..

  Xyz company purchased inventory for 3450 on account the

xyz company purchased inventory for 3450 on account. the discount terms were 415 n30. xyz returned merchandise in the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd