Love Company reported net income of P5,000,000 for the Hannah Company owned 20% of Love Company's preference S. share capital and 50% of the ordinary share capital. Love Company's share capital outstanding comprised the following at year-end: 10% cumulative preference share capital Ordinary share capital 2,000,000 7,000,000 current year.

Love Company reported net income of P5,000,000 for the Hannah Company owned 20% of Love Company's preference S. share capital and 50% of the ordinary share capital. Love Company's share capital outstanding comprised the following at year-end: 10% cumulative preference share capital Ordinary share capital 2,000,000 7,000,000 current year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What amount should be recorded as investment income for Hannah Company owned 20% of Love Company's preference share capital and 50% of the ordinary share capital. do-T-Valix-2-pdf.pdf Love Company's share capital outstanding comprised the following at year-end: 10% cumulative preference share capital Ordinary share capital 2,000,000 7,000,000 Love Company reported net income of P5,000,000 for the current year. What amount should be recorded as investment income 10 the current year? a. 2,400,000 b. 2,500,000 c. 2,600,000 d. 2,700,000 490
Mara Company provided the following data at year-end:Authorized share capital 5,000,000Unissued share capital 2,000,000Subscribed share capital 1,000,000Subscription receivable 400,000Share premium 600,000Retained earnings unappropriated 600,000Retained earnings appropriated 300,000Revaluation surplus 200,000Treasury shares, at cost 150,000What total amount should be reported as shareholders’ equity?
Ute Company reported the following capital structure during the current year: 5% cumulative preference share capital, par value P100, 25,000 shares issued and outstanding Ordinary Share capital, par value P35, 100,000 shares issued and outstanding The entity reported net income of P5,000,000 for the current year. The entity paid P125,000 in preference dividends in the current year. 7. What amount should be reported as the basic earnings per share? a. 48.75 b. 50.00 c. 51.25 2,500,000 3,500,000
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.
AAA Company had the following share capital at the end of the reporting period: Cumulative preference share capital, P100 par, 50,000shares outstanding, 10% dividend rate, each shareconvertible into 2 ordinary shares 5,000,000 Ordinary share capital, P50 par, 500,000 sharesauthorized, 200,000 shares outstanding 10,000,000 The entity reported net income of P5,400,000 for the current year. No share capital activity took place during the year. The income tax rate is 30%. The preference share was issued in the prior year at par value. Questions: 1. Compute for the basic earnings per share. 2. Compute for the diluted earnings per share.
Kremlin Company reported the following shareholders' equity at year-end: Share capital, P30 par value, P3,000,000; Share premium, P600,000; Retained earnings, P4,200,000. A 20% share dividend was declared and distributed at year-end when entity's share was selling at P65. What amount should be reported as share capital outstanding?
Problem 18-21 (AICPA Adapted) At the beginning of current year, Trojan Company was organized with the following capital structure: 10% cumulative preference share capital, par. value P10, liquidation value P12, authorized, issued and outstanding 100,000 shares, P1,000,000. Ordinary share capital, par value P100, authorized 40,000 shares, issued and outstanding 30,000 shares, P3,000,000. The net income for the current year was P6,000,000 and no dividends were declared. 1. What amount should be reported as book value per odinary share? а. 290 b. 293 с. 300 d. 333 2. What amount should be reported as book vålue per preference share? а. 100 b. 130 c. 110 d. 120
Gin Company had the following capital structure during the current year: Preference share capital, P10 par, 4% cumulative, 25,000 shares issued and outstanding-250,000 Ordinary share capital, P5 par, 200,000 shares issued and outstanding-1,000,000 The entity reported net income of P500,000 for the current year: The entity paid no preference dividends during the prior year and paid P16,000 in preference dividends during the current year. What amount should be reported as basic earnings per share? a. 2.42b. 2.45c. 2.48d. 2.50
BONAL Company reported the following information for the current year:Income before tax 5,000,000Income tax 1,600,000Loss from discontinued operations 800,000Required:Present the basic earnings per share on the face of the income statement under each ofthe following assumptions:1. The entity has only one class of share capital, 50,000 ordinary shares with par valueof P100.2. The entity has two classes of share capital: Preference share, 10% cumulative, P100 par 2,000,000 Ordinary share, P100 par, 50,000 shares 5,000,000
Problem 16-12 (AICPA Adapted) Maxim Company acquired 40,000 ordinary shares on October 1 for P6,600,000 to be held for trading. On November 30, the investee distributed a 10% ordinary share dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 c. 500,000 d. 600,000
Relay Company provided the following data at year-end: Authorized share capital P 5,000,000 Unissued share capital 2,000,000 Subscribed share capital 1,000,000 Subscription receivable 400,000 Share premium 500,000 Retained earnings, unappropriated 600,000 Retained earnings, appropriated 500,000 Treasury shares, at cost 100,000 What total amount should be reported as shareholders' equity? O P5,100,000 P4,800,000 P4,900,000 O P5,500,000
BFAR Company reported the following Shareholders' at year-end: Share Capital, P50 par value Share Premium Accumulated Profits - Free 3,000,000 O 60,000 O 82,800 O 69,000 O 72,000 600,000 4,200,000 A 15% share dividend was declared and distributed at year-end when the entity's share was selling at 65. Compute the total shares outstanding after share dividend distribution.