Company A has significant influence by owning 50,000 of the 100,000 shares of Company B common stock. During the current year, Company Bearns $700,000 and pays cash dividends of $400,000. Which amount represents the resulting increase in the Equity Investment account? O $150,000 O $200,000 O $350,000 $550,000
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- A Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares 1,200,000 Investment in Benguet ordinary shares, 10,000 shares 1,000,000 During the current year, the following transactions were completed: 1 Purchased 4,000 ordinary shares of SMDC for P300,000. 2 Received 2,000 ordinary shares of Benguet Company in lieu of cash dividends of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3 Purchased 6,000 ordinary shares of SMDC for P420,000. 4 Received semiannual dividend on SMC Company. 5 SMDC ordinary share was split on a 2-for-1 basis. 6 Sold 8,000 SDMC shares at P85 less transaction costs of 5%. Use average approach. Required: Prepare a summary of the portfolio of investments stating the number of shares and the corresponding costs. B Company had the following transactions: 2018 Aug-01 Purchased 1,000 shares of Star Company for P60,000. Oct-01 Purchased 8,000…The share capital account of the company reports a balance of R500 000 reporting ordinary shares of 20 cents each. Directors have declared an interim dividend of 5 cents per share. What is the amount of the dividend to be accounted for? Select one: a. R25 000 b. R50 000 c. R125 000 d. R75 000Exercise 5. Various share capital transactions Joshua Company has two classes of share capital outstanding: 10%, P50 par preference share capital and P10 par ordinary share capital. At December 31, 2019, the following accounts were included in the shareholder's equity: Preference Share Capital, 100,000 shares Ordinary Share Capital, 1,000,000 shares Preference Share Premium P5,000,000 Ordinary Share Premium P10,000,000 Retained Earnings P4,500,000 The following transactions have affected the shareholder's equity of the company during the year 2020: Jan. 1 Issued 15,000 preference shares at P60 per share. Feb.1 Issued 25,000 ordinary shares at P25 per share. July 1 Reacquired 20,000 ordinary shares at P14 per share. Oct. 31 Reissued 15,000 treasury shares at P16 per share. Dec.31 Profit for the year is P2,500,000. Prepare the journal entries of the foregoing transactions and prepare the Shareholder's equity section of the Company as of December 31, 2020.
- 29-A company’s earnings available to equity shareholders are OMR 160,000 and it has it has 5% Bonds of OMR 200,000. What is the amount of net operating income under the Net Income Approach? Assume corporate tax rate is 50%. a. OMR 155,000 b. OMR 165,000 c. OMR 170,000 d. OMR 150,000Problem 16-3 (IAA) Effective Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares Investment in Benguet ordinary shares, 10,000 shares 1,200,000 1,000,000 During the current year, the following transactions were completed: 1. Purchased 4,000 ordinary shares of ANA Company for P300,000. 2. Received 2,000 ordinary shares of Benguet Company in lieu of a cash dividend of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3. Purchased 6,000 ordinary shares of ANA Company for P420,000. 4. Received semiannual dividend on SMC Company 12% preference share. 5. ANA ordinary share was split on a 2-for-1 basis. 6. Sold 8,000 ordinary shares of ANA Company at P85 less transaction costs of 5%. Use average approach. Required: a. Prepare journal entries to record the transactions. b. Prepare a summary of the portfolio of investments stating the number of shares and the…Assume that you have just purchased some shares in an investment company reporting $975 million in assets, $75 million in liabilities, and 75 million shares outstanding. What is the net asset value (NAV) of these shares? $14 $1 $12 $13
- FI 420 Chapter 10 1). ABC Company had the following accounts on the balance sheet: a. Cash b. Common stock ($10 par; 2 million shares outstanding) c. Additional paid-in-capital d. Retained earnings $25 million $20 million $10 million $62 million How would each of these accounts appear after: a. A cash dividend of $1 per share? b. A 5% stock dividend (market value of stock is $40 per share)? c. A two-for-one stock split? d. A one-for-two stock split? A. Cash Common stock Additional paid in capital Retained earnings B. Cash Common stock Additional paid in capital Retained earnings Stock price C. Cash Common stock Additional paid in capital Rețained earnings Stock priče D. Cash Common stock Additional paid in capital Retained earnings Stock price Please show your work on the back of this page or on a separate page.which one is correct please confirm? QUESTION 34 WPI Inc. has the following current equity accounts on its balance sheet: Common stock ($2.50 par, 500,000 shares) $ 1,250,000 Contributed capital in excess of par $10,000,000 Retained earnings $15,540,000 Total $26,790,000 If WPI earned $3.20 per share this year, what is the maximum dividend per share that WPI may pay if the state capital impairment provisions are limited to the par value and the contributed capital in excess of par accounts? a. $15.54 b. $31.08 c. $34.28 d. $3.2012. Charice Company revealed the following shareholder's equity at year end: Preference share capital, P100 par 2,300,000 Share premium - PS 805,000 Ordinary share capital, P15 par 5,250,000 Share premium 2,750,000 Subscribed ordinary share capital 500,000 Retained earnings 1,900,000 Note payable 4,000,000 Subscription receivable - ordinary 400,000 How much is the legal capital? a. 8,050,000 b. 7,650,000 c. 9,950,000 d. 11,605,000
- 4. ORANGE Corporation has outstanding 20,000 shares of 8% preference shares with a ₱10 par value and 100,000 shares of ₱3 par value ordinary shares. Dividends have been paid every year except last year and the current year. If ₱80,000 is distributed, how much will the ordinary shareholders receive? a. ₱ 48,000 b. ₱ 64,000 c. ₱ 0 d. ₱ 80,000H5. You are considering an investment in Roxie's Bed & Breakfast Corporation During the last year, the firm's income statement listed an addition to retained earnings of $4.8 million and common stock dividends of $2.2 million. Roxie's year-end balance sheet shows common stockholders' equity of $35 million with 10 million shares of common stock outstanding. The common stock's market price per share was $9.00. What are Roxie's Bed & Breakfast's earnings per share? Calculate the price-earnings ratio. Show proper step by step calculationPROBLEM 3: EXERCISES 1. Dinakdakan Co. declared P50 cash dividends per share. On the date of declaration, Dinakdakan Co.'s equity was as follows: 1,600,000 Share capital, P100 par Subscribed share capital Share premium Retained earnings vib 440,000 200,000 908,000 (288,000) 140,000 Treasury shares, P120 cost Other components of equity Total shareholders' equity 3,000,000-
