Presented below the capital structure of DBM Corporation as of December 31, 2018: Ordinary Share Capital, P 50 par, 100,000 issued and 95,000 outstanding shares 5,000,000 Ordinary Share Premium 1,000,000 Retained Earnings 8,000,000 Treasury Shares 120,000 The Corporation declared the following dividends during 2019: April 1 Declared a cash dividend of P 10 per share of ordinary shares. The corporation issued 6% interest bearing promissory note in relation to cash dividend declared payable on September 30 to shareholders of record of April 20. November 10 Declared a cash dividend of P6 per share of ordinary shares, payable on December 15 to shareholders of record of November 20, Requirement Record the transactions occurred during 2019 Problem 2 (Property Dividend) Goodie Corporation owns 20,000 shares of JFC Corporation recorded as "Investment in JFC Corporation" amounting to P 1.1 million as of December 31, 2019. On December 15, 2020, Goodie Corporation declared a property dividend to shareholders of record of December 30, distributable on January 5, 2021. The corporation will distribute three (3) ordinary shares of JFC Corporation for every share of Goodie Corporation owned by the shareholders. Goodie Corporation has 5,000 issued and outstanding shares at the time of declaration. The carrying value of JFC as of December 15, 2020 is 60 per share. The fair market value of JFC Corporation as follows: December 15 - 65 per share: December 31 - 67 per share: January 5 - 66 per share. Requirement: 1. Journalize the transactions occurred in relation to property dividends. 2. What will be the gain or loss on January 5, 20212 Problem 3 (Small and Large Stock Dividends) On November 7. Lauren Enterprise Company declared a share capital dividend distributable to shareholders of record of November 15, distributable on December 5. The Lauren Enterprise Company has 250,000 ordinary shares with 20 par value per share at the date of declaration. The fair market value of Lauren Enterprise as follows: November 7 - 25 per share: November 15 - 22 per share: December 5 - 24 per share. Requirement: Prepare all the necessary entries to record the transaction of share capital dividends using the following independent assumptions: 1. A 15% share capital dividend 2. A 25% share capital dividend Problem 4 (Allocation of Cash Dividends to Preference and Ordinary Shareholders) The Company has the same capital structure (except for retained earnings) for the past five year, see details below: 6% Preference Share Capital, 80.000 shares issued and outstanding, P 50 par P4,000,000 Ordinary Share Capital, 200,000 shares issued and outstanding, P 30 par 6,000,000 Retained Earnings 5,000,000 No dividends were paid prior to 2020 for two years. On December 10, 2020, the Company declared P1,500,000 as cash dividends to shareholders of record of December 21, 2020, payable on January 5,2021. Requirements: 1. Prepare all the necessary journal entries to record the dividend transactions, 2. Allocate the dividends between ordinary shareholders and preference shareholders if: Requirements: 1. Prepare all the necessary journal entries to record the dividend transactions. 2. Allocate the dividends between ordinary shareholders and preference shareholders if: Case A. Preference share capital is NON-CUMULATIVE and NON-PARTICIPATING Case B. Preference share capital is CUMULATIVE and NON-PARTICIPATING Case C. Preference share capital is NON-CUMULATIVE and FULLY PARTICIPATING Case D. Preference share capital is NON-CUMULATIVE and PARTICIPATING UP TO ADDITIONAL 5% 3. Assuming the dividend declared is P 1,000,000 what will be the allocation of dividends if in case the preference share is CUMULATIVE and FULLY PARTICIPATING