Problem 1

TAGOGO COMPANY has been paying regular quarterly dividends of P1.50 and wants to pay the same amount in the third quarter of 2013. The following information relates to the company's equity:

Jan. 1Shares outstanding, 500,000; P2 par (900,000 shares authorized).

Feb.15Issued 30,000 new shares at P10.50.

Mar.31Paid quarterly dividend of P1.50 per share.

May 12Converted P1,000,000 bonds to ordinary shares at the rate of P50 shares per P1,000 bond

June15Issued a 10% share dividend

30Paid quarterly dividend of P2 per share

1. What is the total amount of dividends to be distributed during the year assuming no equity transactions occur after June 30?