Accounting Philippines

Retained Earnings Transaction

Please show entry or solution needed.

Problem 15: Dividends Vic Corp., has P800,000 of 8% preference shares and P1,200,000 of ordinary shares outstanding, each having a par value of P10 per share. No dividends have been paid or declared during 2009 and 2010. As of December 31, 2021, it is desired to distribute P488,000 in dividends. Required: How much will the preference and ordinary shareholders receive under each of the following assumptions: (a) The preference is noncumulative and nonparticipating. (b) The preference is cumulative and nonparticipating. (c) The preference is cumulative and fully participating. (d) The preference is cumulative and participating to 12% total