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    Quiz On Retained Earnings

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    Camila Aldueza
    1. The entry to record the cash dividend paid to ordinary shares on June 30 requires a debit to retained earnings of P200,000 (0.50 per share on 400,000 ordinary shares). 2. The entry to record the 10% stock dividend declared to ordinary shares on August 30 requires a debit to retained earnings of P680,000 (10% of 400,000 shares x market price of P17 per share). 3. The balance of share premium from ordinary shares as of December 31, 2017 is P1,800,000.

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    Quiz On Retained Earnings

    Uploaded by

    Camila Aldueza
    81 views2 pages
    1. The entry to record the cash dividend paid to ordinary shares on June 30 requires a debit to retained earnings of P200,000 (0.50 per share on 400,000 ordinary shares). 2. The entry to record the 10% stock dividend declared to ordinary shares on August 30 requires a debit to retained earnings of P680,000 (10% of 400,000 shares x market price of P17 per share). 3. The balance of share premium from ordinary shares as of December 31, 2017 is P1,800,000.

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    Retained Earnings

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    1. The entry to record the cash dividend paid to ordinary shares on June 30 requires a debit to retained earnings of P200,000 (0.50 per share on 400,000 ordinary shares). 2. The entry to record the 10% stock dividend declared to ordinary shares on August 30 requires a debit to retained earnings of P680,000 (10% of 400,000 shares x market price of P17 per share). 3. The balance of share premium from ordinary shares as of December 31, 2017 is P1,800,000.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    81 views2 pages

    Quiz On Retained Earnings

    Uploaded by

    Camila Aldueza
    1. The entry to record the cash dividend paid to ordinary shares on June 30 requires a debit to retained earnings of P200,000 (0.50 per share on 400,000 ordinary shares). 2. The entry to record the 10% stock dividend declared to ordinary shares on August 30 requires a debit to retained earnings of P680,000 (10% of 400,000 shares x market price of P17 per share). 3. The balance of share premium from ordinary shares as of December 31, 2017 is P1,800,000.

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    © All Rights Reserved
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    of 2

    QUIZ ON RETAINED EARNINGS

    The shareholder’s equity section of Standard Corporation’s statement of financial


    position as of December 31, 2016, is as follows:
    Ordinary Shares, P 10 par value; authorized, 2,00,000 shares; issued P   
    400,000 shares 4,000,000
    Preference Shares, P 5 par value; authorized, 1,000,000 shares; issued 1,000,000
    200,000 shares
    Share Premium- Ordinary Shares 1,800,000
    Share Premium – Preference Shares 600,000
    Retained Earnings 6,000,000
    The following transactions occurred during 2017:
    January 5 The company issued for P 2,350,000, 100,000 ordinary shares and 50,000
    preference shares. The company incurred shares issue cost at P 150,000. The
    ordinary and preference shares are currently selling at P 15 and P 10,
    respectively.
    February 50,000 preference shares were subscribed at P 12 per share
    16
    March 25 20,000 previously unissued ordinary shares were issued in exchanged of an
    equipment with a fair value of P 500,000. The company incurred share issue
    costs at P 20,000.
    April 20 Reacquired 40,000 ordinary shares as treasury shares at P18 per share
    June 30 The company declared and paid P 0.50 to ordinary shares and P 1 per share
    to preference shares
    July 30 Reissued half of the treasury shares at P 16 per share.
    August 30 A 10% ordinary stock dividend was declared and issued to ordinary shares.
    Market value per share is P17.
    Sept. 16 Collected full payments on 80% of the preference shares subscribed on
    February 16.
    November Declared the investment in Excellent Corporation P 5 par value ordinary
    14 shares as property dividend when its market value is P 12 per share. One
    share of Excellent for every 10 Standard preferred shares held. Excellent
    shares cost Standard P 10 per share and has a market value of P 14 and P 15
    per share on December 31 and January 30, the date of distribution,
    respectively.
    December The company declared and paid P 0.50 to ordinary shares and P 1 per share
    31 to preference shares
    December Adjusted Net Income for the year is P 3,510,000
    31

    NOTE : SOLVE ALL THE REQUREMENTS IN THIS PROBLEM AND


    ANSWER INDIVIDUAL QUESTION IN EACH NUMBER.
    QUESTION IN THIS NUMBER - 1. The entry to record cash dividend on June
    30, requires a debit to retained earnings at what amount?

           2.    The entry required to record the stock dividends on August 30 requires a debit
    to retained earnings at  what amount?     
           3.   What is the balance of Premium in Excess of Par from Ordinary Shares as of
    December 31, 2017 ?     
          4.  What is the balance of Unappropriated Retained Earning as of December 31,
    2017 ?
          5. What is the balance of the total share capital as of December 31, 2017?
          6. If Subscription Receivable is collectible currently, how much is the balance of the
    Subscribed Share Capital at the end of 2017?         
         7. What is the balance of Share Premium from Preference  Shares Capital at the end
    of 2017?   
         8. What is the total Shareholders’ Equity at the end of 2017?          
         9. What is the balance of Property Dividend Payable at the end of 2017?
        10. What is the number of outstanding ordinary shares at the end of 2017?

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