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    Chapter 9 Multiple Choices

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    shiroe raabu
    This document contains accounting problems and solutions related to preference shares, ordinary shares, dividends, and shareholders' equity. Problem 15 asks to calculate the number of outstanding ordinary shares based on the ordinary share dividend distributable and dividend per share. The solution is that with a distributable dividend of 105,000 and dividend per share of 5, the number of outstanding ordinary shares is 21,000. Problems 16-20 provide financial statement details for contributed capital and retained earnings, including ordinary share capital of 750,000 for 150,000 shares issued and outstanding.

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    Chapter 9 Multiple Choices

    Uploaded by

    shiroe raabu
    105 views5 pages
    This document contains accounting problems and solutions related to preference shares, ordinary shares, dividends, and shareholders' equity. Problem 15 asks to calculate the number of outstanding ordinary shares based on the ordinary share dividend distributable and dividend per share. The solution is that with a distributable dividend of 105,000 and dividend per share of 5, the number of outstanding ordinary shares is 21,000. Problems 16-20 provide financial statement details for contributed capital and retained earnings, including ordinary share capital of 750,000 for 150,000 shares issued and outstanding.

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    Chapter 9 Baysa and lupisan 2014

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    This document contains accounting problems and solutions related to preference shares, ordinary shares, dividends, and shareholders' equity. Problem 15 asks to calculate the number of outstanding ordinary shares based on the ordinary share dividend distributable and dividend per share. The solution is that with a distributable dividend of 105,000 and dividend per share of 5, the number of outstanding ordinary shares is 21,000. Problems 16-20 provide financial statement details for contributed capital and retained earnings, including ordinary share capital of 750,000 for 150,000 shares issued and outstanding.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    105 views5 pages

    Chapter 9 Multiple Choices

    Uploaded by

    shiroe raabu
    This document contains accounting problems and solutions related to preference shares, ordinary shares, dividends, and shareholders' equity. Problem 15 asks to calculate the number of outstanding ordinary shares based on the ordinary share dividend distributable and dividend per share. The solution is that with a distributable dividend of 105,000 and dividend per share of 5, the number of outstanding ordinary shares is 21,000. Problems 16-20 provide financial statement details for contributed capital and retained earnings, including ordinary share capital of 750,000 for 150,000 shares issued and outstanding.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    1.

    2. B

    3. B

    4. C

    5. A

    6. A
    Retained Earnings 80,000
    Loss -12,000
    Issued -7,000
    61,000

    7. B
    Cash dividend 200,000 Preference share dividend per year
    Dividends in arrears -24,000 2000 * 100 * .06 = 12000
    Dividend for the year -12,000
    Dividend distributable to OSC 164,000

    8. C
    Dividends in arrears 24,000
    Dividend for the year 12,000
    Dividend distributable to PSC 36,000

    9. C
    Liquidation value 600,000 Preference share capital issued
    Dividend in arrears 250,000 500,000/ 100 = 5,000
    Equity Identified w/ PSC 850,000
    Divided by PSC 5,000
    Book value per share of PSC 170

    10. C
    Total SHE 4,100,000 Ordinary Share Capital
    Equity identified w/ PSC -850,000 3,000,000/ 60 = 50,000
    Equity identified w/ OSC 3,250,000
    Divided by OSC 50,000
    Book value per share of OSC 65

    11. A 20,000 *.20*2 = 10,000

    12. D Stock Dividend DOES NOT AFFECT total assets and shareholders' equity

    13. B 750,000/ 5 = 150,000

    14. C 300,000/ 12,000 = 25


    15.B Retained Earnings 168,000 Find the number of outstanding on ti dividend
    OSC Dividend Distributable 105,000 105,000/5 = 21,000
    PIC from OSC Dividend 63,000 168,000/21 = 8

    16-20 Contributed Capital:


    Share Capital
    10% Preference Share, P25 par,
    25,000 shares authorized
    12,000 shares issued and outstanding 300,000
    Ordinary Shares, P5, 500,000 shares
    authorized, 150,000 issued and outstanding 750,000
    OS Dividend Distributable 105,000
    PIC from Stock Dividend 63,000
    Ordinary Share Capital Subscribed 25,000
    Additional Paid-in Capital:
    Preference Share Premium 30,000
    Ordinary Share Premium 50,000
    Total Contributed Capital 1,323,000
    Retained Earnings
    Appropriated for contingencies 150,000
    Appropriated for Bond Retirement 100,000
    Total 250,000
    Unappropriated Retained Earnings 450,000 700,000
    Total Shareholders' Equity 2,023,000
    Liquidation Value Dividend in arrears
    5,000 * 120 = 600,000 500,000 *.10 * 5 = 250,000
    outstanding on ti dividend distributable

    16. D
    17. B
    18. B - C
    19. A
    20. C - D
    0 *.10 * 5 = 250,000

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