Accounting Philippines

Retained Earnings Transaction

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Problem 14: Dividend Ramil Company began operations in January 2012 and reported the following.net income or loss for five years of operations: 2012 1,500,000 loss 2013 1,300,000 loss 2014 1,200,000 loss 2015 4,500,000 income 2016 9,000,000 income On December 31, 2016, the capital accounts were as follows: 10,000,000 Preference share capital, P100 par, 12% participating cumulative 100,000 shares Preference share capital, P100 par, 10% nonparticipating, noncumulative, 50,000 shares Ordinary share capital, P10 par, 1,000,000 shares 5,000,000 10,000,000 The entity has never paid cash or stock dividend. The capital accounts have not changed since the entity began operations. If the maximum amount available for cash dividend is declared on December 31, 2016, what amount of dividend is payable to Required: Determine the total dividend of preference and ordinary shares