Banner Publications was organized early in 2008 with authorization to issue 10,000 preference shares of $100...
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Banner Publications was organized early in 2008 with authorization to issue 10,000 preference shares of $100 par value and 1 million ordinary shares of $1 par value. All the preference shares were issued at par, and 400,000 ordinary shares were sold for $15 per share. The preference shares pay a 10 percent noncumulative dividend. |
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During the first five years of operations (2008 through 2012) the corporation earned a total of $4,100,000 and paid dividends of $.80 per share each year on the ordinary shares. In 2013, however, the corporation reported a loss of $1,100,000 and paid no dividends. |
| a. |
Prepare the shareholders’ equity section of the statement of financial position at 31 December 2013. Include a supporting schedule showing your computation of retained earnings at end of reporting period. (Hint: Income increases retained earnings, whereas dividends and losses decrease retained earnings.) (Input all amounts as positive values. Omit the "$" sign in your response.) |
| BANNER PUBLICATIONS | |||
| Partial Statement of Financial Position | |||
| December 31, 2013 | |||
| Shareholders' equity: | |||
| (Click to select)Noncumulative Preference sharesManufacturing overheadRental equipmentRetained earningsSalaries payable | $ | ||
| (Click to select)Retained earningsPreference sharesSelling and administrative expensesOrdinary sharesSalaries payable | |||
| (Click to select)Cost of goods soldUtilities expenseShare premium: ordinary sharesWork in process inventoryAdditional paid-in capital: Preference shares | |||
| Total paid-in capital | $ | ||
| Retained earnings | |||
| (Click to select)LossProfit | $ | ||
| (Click to select)Rental equipmentLess: Preference share dividendsAdd: Ordinary share dividendsAdd: Preference share dividendsLess: Ordinary share dividends | $ | ||
| (Click to select)Rental equipmentLess: Ordinary share dividendsLess: Preference share dividendsAdd: Preference share dividendsAdd: Ordinary share dividends | |||
| Retained earnings, December 2012 | $ | ||
| (Click to select)Less: LossAdd: Profit of 2013 | |||
| Retained earnings, December 31, 2013 | $ | ||
| Total shareholders' equity | $ | ||
Homework Answers
| Partial Statement of Financial Position | ||
| December 31, 2013 | ||
| Noncumulative Preference shares | 1,000,000 | |
| (10,000 x 100 ) | ||
| Ordinary shares | 400,000 | |
| (400,000 x 1 ) | ||
| Share Premium-Ordinary Shares | 5,600,000 | |
| (400,000 x 14 ) | ||
| Total Paid In Capital | 7,000,000 | |
| Retained earnings: | ||
| Profit from 2008 till 2012 | 4,100,000 | |
| Less: Ordinary Shares Dividends | 1,600,000 | |
| (400,000 x 0.80 x 5 ) | ||
| Retained earnings December 2012 | 2,500,000 | |
| Less: Loss of 2013 | 1,100,000 | |
| Retained earnings, December 2013 | 1,400,000 | |
| Total shareholders' equity | 8,400,000 | |
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Banner Publications was organized early in 2008 with
authorization to issue 10,000 preference shares of $100...
Banner Publications was organized early in 2008 with authorization to issue 10,000 preference shares of $100...
Banner Publications was organized early in 2008 with authorization to issue 10,000 preference shares of $100 par value and 1 million ordinary shares of $1 par value. All the preference shares were issued at par, and 400,000 ordinary shares were sold for $15 per share. The preference shares pay a 10 percent noncumulative dividend. During the first five years of operations (2008 through 2012) the corporation earned a total of $4,100,000 and paid dividends of 5.80 per share each year...
Early in 2008, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares
Early in 2008, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share. The preferred stock pays an 8 percent cumulative dividend.During the first four years of operations (2008 through 2011), the corporation earned a total of $1,085,000 and paid dividends of...
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kindly provide explanations
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Starfruit. company in Hong Kong, comprised 5,000,000 fully paid ordinary draft statement com, a listed shares of...
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The year-end statement of financial position of Jackson Products Limited, includes the following shareholders' equity section...
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Banner Publications was organized early in 2008 with authorization to issue 10,000 preference shares of $100 par value and 1 million ordinary shares of $1 par value. All the preference shares were issued at par, and 400,000 ordinary shares were sold for $15 per share. The preference shares pay a 10 percent noncumulative dividend. During the first five years of operations (2008 through 2012) the corporation earned a total of $4,100,000 and paid dividends of 5.80 per share each year...
kindly provide explanations
Instructions: Record the declaration Record the declaration and distribution of the above dividends. Exercise 9-7 Allocation of Cash Dividends to Preference and Ordinary Shareholders) The STU Co. has paid dividends for the last three years as follows: 2012 - P2,500,000; 2013 - P3,500,000; 2014 - P6,500,000. During the last three years, the company has the following outstanding share capital: 100.000 shares of P100 par, 12% Preference Share Capital and 500,000 shares of P10 par Ordinary Share Capital....
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