Question
HI :) This is all bout shareholder's equity.. can you help me solve these problems? 1.The directors of Pete Corporation, whose P50 par value ordinary
HI :) This is all bout shareholder's equity.. can you help me solve these problems?
1.The directors of Pete Corporation, whose P50 par value ordinary share is currently selling at P70 per share, have decided to declare a bonus issue. Pete has an authorization fro 250,000 ordinary shares, has issued 100,000 shares of which 10,000 shares are now held as treasury, and desires to capitalize P945,000 of the retained balance. To accomplish this, the percentage of bonus issue that the directors should declare is ________________.
2.Way Company reported the following in its statement of shareholders' equity on January 1, 2019:
Ordinary share capital, P5 par value, 200,000
shares authorized; 100,000 shares issuedP500,000
Additional paid-in capital1,500,000
Retained earnings516,000
----------------------
2,516,000
Less: Treasury shares, 5,000 shares at cost40,000
-----------------------
Total Stockholders' Equity2,476,000
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The following events occurred in 2019:
May 11,000 treasury shares were sold for P10,000.
July 910,000 shares of previously unissued ordinary share were sold for P12
per share.
Oct. 1The distribution of a 2-for-1 split resulted inthe ordinary share's par value being halved.
How many shares are issued and outstanding at December 31, 2019?
3.On December 10, Pia Company split its share capital 5-for-2 when the market value was P65 per share. Prior to the split, Pia had 200,000 shares of P15 par value share capital. What is the par value of each share after the split?
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