Reference no: EM133039576
Question - The shareholders's equity accounts of ABC corporation on December 31, 2020 are as follows:
10% preference share capital, 5,000 shares, P50 par P250,000
Ordinary Share Capital, P100 par P500,000
Share Premium P100,000
Retained Earnings P200,000
Cash dividends were declared on this date. Dividends were last declared on December 31, 2018.
Required - What the total dividends and dividend per share on preference and ordinary share capital under each independent assumptions:
a. Preference share is cumulative and participating and the dividend amount declared is P130,000.
b. Preference share is non-cumulative and participating and the dividend amount declared is P60,000.
c. Preference share is non-cumulative and participating and the dividend amount declared is P35,000.
d. Preference share is cumulative and participating and the dividend amount declared is P60,000.
e. Preference share is non-cumulative and non-participating and the dividend amount declared is P60,000.
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