Corporation Short Problem 10and 12 Accounting 30 Ateneo Lex

Short Problem 1 Inday Inc. has 10,000 shares of P3.50 Cumulative Preferred Stock, P50 par value and 100,000 shares of P4 par value common stock outstanding. The company has not declared dividends for 2 years. This year Inday, Inc. declares a cash dividend for the current year, and a P1.50 per share dividend to common stock. What is the total amount of dividend? Answer: 255,000 Accounting 30 Ateneo Lex

Short Problem 2 The following is the stockholders’ equity section of Roco-Roco Inc. Paid In Capital Preferred Stock, P100 par value, 20,000 shares authorized, 4,000 shares issued P400,000 Common Stock, P5par value, 100,000 shares Authorized, 30,000 shares issued 150,000 PIC in excess of par, Preferred stock 16,000 PIC in excess of par, Common Stock 105,000 Retained Earnings 671000 Total paid-in capital 267,000 Total Stockholder’s Equity 938,000 Note: the preferred stock is currently selling for P102.25 per share, and the common stock is currently selling for P11.50 per share. Accounting 30 Ateneo Lex

Short Problem 2 Compute for the following, indicate your answer in the space provided. The total paid-in capital after the declaration of a 10% common stock dividend: 705,500 The total stockholders’ equity after the distribution of a 10% common stock dividend: P938,000 The balance in the common stock account after the declaration of a 10% common stock dividend: P150,000 The number of shares of common stocks after the declaration of a 10% stock dividend: Authorized: 100,000 Issued: 30,000 Outstanding: 30,000 e. The total paid-in capital if instead a 10% common stock dividend, the company gives 6 shares of common stock for every 10 shares of common stocks. 761,000. Accounting 30 Ateneo Lex

P462500 (Answer) Short Problem 3 Pac Quiao Corp. has 15,000 shares of 5%, P100 par, cumulative preferred stock outstanding as well as 130,000 shares of P3 par common stock. As of the beginning of this fiscal year, there were 3 years of dividends in arrears on the preferred stock. The board of directors wants to give the common stockholders a P1.25 dividend pershare. The total dividend to be declared is: P462500 (Answer) Accounting 30 Ateneo Lex

750,000 (150,000x5) (answer) Short Problem 4 Apex Corp. issued 150,000 shares of P5 par value capital stock at date of incorporation for cash at a price of P8 per share. During the first year of operations, the company earned P110,000 and declared a dividend of P75,000. At the end of this first year of operations, the balance of the Capital Stock account is: Ans: 750,000 (150,000x5) (answer) Accounting 30 Ateneo Lex

Short Problem 5 ALLOUT Corpockholders’ equity was organized on Jan 1, 20XA, with authorized capital of 100,000 shares of P20 par value common stock. During 20XA, the corporation had the following transactions affecting stockholders’ equity: Jan 10 - Issued 25,000 shares at P22 a share March 25 - issued 1000 shares for legal services when the fair market value was P22/share and the amount of the services was P28,000. Sept. 30 - issued 5,000 shares for a tract of land when the fair market value of the stock was P26 per share. What amount should ALLOUT Corp. report as additional-paid in capital in excess of par at December 31, 20XA? Ans: 88,000 Accounting 30 Ateneo Lex

Short Problem 6 Answer: 240000 Accounting 30 Ateneo Lex

Short Problem 7 Answer: Additional paid in capital: 150,000 Effective April 27, 2000. The stockholders before Corporation approved a two-for-one split of the company’s common stock, and an increase in authorized common shares from 100,000 shares (par value P20 per share). The following is the stockholders’ equity accounts before issuance of the stock split: Common stock, par value P20; 100,000 shares authorized, 50,000 shares outstanding 1,000,000 Additional paid-in capital (premium of P3 per share on issuance of common stock) 150,000 Retained Earnings 1,350,000 What should be the balances in Before Corporation’s additional Paid -in capital and retained earnings account immediately after the stock split is affected? Answer: Additional paid in capital: 150,000 Retained Earnings 1,350,000 : Accounting 30 Ateneo Lex

Short Problem 8 On September 30 of the current year, Keso corp. issued 4000 shares of P100 par common stock in connection with a stock dividend. The market value per share on the date of declaration was P150, and P160 on the date of issue. Keso stockholders’ equity before the issuance of the stock dividend shares were: Common stock, P100 par, 50,000 shares authorized; 10,000 shares outstanding 1,000,000 APIC in excess of par 3,000,000 Retained Earnings 1,500,000 What should be the retained earnings balance immediate the stock dividend? Answer: 1100000 Accounting 30 Ateneo Lex

Short Problem 9 Answer: Dividends to common: 38400 Dividends to preferred: 27600 Accounting 30 Ateneo Lex

Short Problem 10 Accounting 30 Ateneo Lex

Short Problem 11 Answer: 1350000 Accounting 30 Ateneo Lex

Short Problem 12 Accounting 30 Ateneo Lex

Short Problem 13 68000 (ANS) 360000 (ANS) Accounting 30 Ateneo Lex

Long Problems Accounting 30 Ateneo Lex

Long Problem 1 Accounting 30 Ateneo Lex

Long Problem 1 ANSWER Accounting 30 Ateneo Lex

Long Problem 2 Accounting 30 Ateneo Lex

Long Problem 2 (Answer) Accounting 30 Ateneo Lex

Long Problem 3 Accounting 30 Ateneo Lex

Long Problem 3 (Ans) Accounting 30 Ateneo Lex

Long Problem 3 (Ans) Accounting 30 Ateneo Lex

Long Problem 4 Accounting 30 Ateneo Lex

Long Problem 4 Answer Accounting 30 Ateneo Lex

Long Problem 4 Answer Accounting 30 Ateneo Lex

Long Problem 6 Accounting 30 Ateneo Lex

48000 21000 27000 12000 42000 Long Problem 6 Answer Accounting 30 Ateneo Lex