3. Use the same informationgiven in Problem 1. Theretirement of the 2,000preference shares woulddecrease Share Premium -Preference by:O a. PoO b. P16,000O c. P20,000O d. P60,000* 1. The PowerPointCorporation has two classesof share capital outstanding:9% (dividend rate), P20 par,Preference and P70 par,Ordinary. During the fiscalyear ending December 31,2012, the company had theequity transactions inchronological order asreflected in the table below.Dividends were paid at theend of the fiscal year on theordinary share at P1.20 pershare and on the preferenceat the preference rate. Profitfor the year was P850,000.No. of sharesPrice per shareIssue of preference share10,000P28Issue of ordinary share35,00070Reacquisition and retirement of preference2,00030Purchase of treasury ordinary share5,00080Share split2-for-1Reissue of treasury ordinary share.5,00052Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financialposition were:Preference Share Capital, 50,000 sharesP1,000,000Ordinary Share Capital, 100,000 shares7,000,000Share Premium - Preference400,000Share Premium-Ordinary1,200,000Retained Earnings550,000

The retirement of shares means that the shares are cancelled and related premium or par capital…

Answered: 3. Use the same information given in…

3. Use the same information given in Problem 1. The retirement of the 2,000 preference shares would decrease Share Premium - Preference by: O a. Po PO O b. P16,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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1. The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20 par, Preference and P70 par, Ordinary. During the fiscal year ending December 31, 2012, the company had the equity transactions in chronological order as reflected in the table below. Dividends were paid at the end of the fiscal year on the ordinary share at P1.20 per share and on the preference at the preference rate. Profit for the year was P850,000. No. of shares Price per share Issue of preference share 10,000 P28 Issue of ordinary share 35,000 70 Reacquisition and retirement of preference 2,000 30 Purchase of treasury ordinary share 5,000 80 Share split 2-for-1 Reissue of treasury ordinary share. 5,000 52 Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financial position were: Preference Share Capital, 50,000 shares P1,000,000 Ordinary Share Capital, 100,000 shares 7,000,000 Share Premium - Preference 400,000 Share Premium-Ordinary…
The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20 par, Preference and P70 par, Ordinary. During the fiscal year ending December 31, 2012, the company had the equity transactions in chronological order as reflected in the table below. Dividends were paid at the end of the fiscal year on the ordinary share at P1.20 per share and on the preference at the preference rate. Profit for the year was P850,000. How much should be the amount of Preference Share Capital to be shown on the December 31, 2012 statement of financial position? How much should be the amount of Ordinary Share Capital to be shown on the December 31, 2012 statement of financial position? a. P9,450,000 b. P9,310,000 c. P9,130,000 d. P4,725,000
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The net income of Zia company for the year ended December 31, 2018 amounted to P5,600,000. Determine the earnings per share of Zia in the following independent cases: a. The entity has only one class of share capital, 100,000 shares with par value of P100. The entity has two classes of share capital: Preference share, 10% cumulative, P100 par 4,000,000 Ordinary share, P100 par, 100,000 shares 10,000,000 b. The entity has two classes of share capital: Preference share, 10% noncumulative, P100 par 4,000,000 Ordinary share, P100 par, 100,000 shares 10,000,000 The preference dividend for the current year was declared. c. The entity has two classes of share capital: Preference share, 10% noncumulative, P100 par 4,000,000 Ordinary share, P100 par, 100,000 shares 10,000,000 The preference dividend for the current year was not declared.