50.1K

Verified Solution

Link Copied!

II$,$ Journal entries:

The retined eamings acocures of the Cory Corporation are as follows

Aperopriasion for Bonced indebledhes:

Aspropriations for Contingencies.

$110,000$

$130,000$

$200,000$

Unappropriatieg

$130000$

$200\mathrm{.}000$

During me monst of Augurt, the folowing mansactions took place.

a$.$ Declared cash dividend of P $60\mathrm{.}000$

b$.$ Decreased the aperopriation for contingencies to $P160,000$

c Establithed in appropriasion for Plurt Eypanion account with annual deposes of P $20,000$

d$.$ Increaved the appropriation for bonded indebtedness by P$20,000$

Aecond the kansactions is peneral foumel enery form.

$2.$ The stockholders' equity section of the Wiland Corponation s bolince sheet show.

Paigrin Caotal

Common Stock, P $100$ par $(10,000$ whares

auhorized $8,000$ shares issued?

Premism on Common Sroct

Retained Earnings

$\backslash$table$[[300,000,],[40,000,40,000],[,200\mathrm{.}000],[1\mathrm{.}040\mathrm{.}000,]]$

Total Stochholders Equity

$1\mathrm{.}040\mathrm{.}090$

The board of drectors declares an ancual cash fividend of $P$ per share, and in addtion, a $10\%$ stock dividend At the time of declaration, the fair market value of the common stock to be issued is P $120.$ Present $($a$)$ the entry $10$ recond the declaration of the cash dividend. $($b$)$ the ency to record the declaration of the stock dividend. $($c$)$ the stockholders equity section afier the completion of the above transactions and the payment of the stock dividend

$3$ a Erercise:

Based on the following information, prepare a retained eamings statemect for the Mann Company for the year ended Decerber $31$

The balances of the Unappropriatod Potained Eamings scoount was P$200,000$ and appropration for contingencies was P$130,000$ as of January $1.$

b$.$ Four quanerly ofiviends of P $10,000$ each have been declared.

c$.$ The Mann Company earned a net protit of P $52000$ for the year

d$.$ Omer affected accounts appear below.

Agcropriator lor Conlingendes

Agerogrision for Bonder inditidress

Dec $530000$ Jin. $1$ Ees $130000$ Jan $1$ Bx$.11000$

b$.$ The following accounts are taken from the ledger of Kooke Kola Corporation:

$10\%$ Preferred Stock $-$ P$20$ par value.

$10,000$ shares authorized, $4,000$ sheres issued

$80,000$

Common Slock $-$ PSO par value.

$5\mathrm{.}000$ shares authorized.

$2\mathrm{.}000$ thares issued

Retained Earnings

$100,000$

The board of drectors declared a cash divisend of P$20,000$ for the year. No dividend was declared last year.

Compute the distribution of the cash Gridend to preferred and common stock under each of the following independent assumplions:

a$.$ Preferred slock is non$-$cumulative and non$-$particpating

b$.$ Prelerred stock is cumulative and non$-$participating

c$.$ Preferred stock is non$-$cumulative but filly partopating

d$.$ Preferred stock is cumulative and fully pariopating

Compute the book values per share under assumptions a and $d$ above

Answer & Explanation Solved by verified expert

See Answer