The adjusted trial balance of ZZZ Corp. on December 31, 2010 includes the following account balances:

Dividends Payable P 40,000

Ordinary Share Capital (P5 par, 5,000 shares authorized) P 750,000

Ordinary Share Capital Subscribed (10,000 subscribed) P 25,000

Ordinary Share Premium P 50,000

10% Preference Share Capital (25,000 shares authorized, 12,000 shares outstanding) P 300,000

Preference Share Premium P 30,000

Retained Earnings Appropriated for Contingencies P 150,000

Retained Earnings Appropriated for Bond Retirement P 100,000

Retained Earnings - Unappropriated P 450,000

Ordinary Share Capital Dividends Distributable P 105,000

Paid-in, Capital from Share Capital Dividend P 63,000

SHOW SOLUTION PLEASE

1. What is the number of ordinary shares issued and outstanding?

a. 5 b. 500,000 c. 750,000 d. 150,000

2. What is the par value of each preferred share?

a. 25 b. 5 c. 8 d. 40

3. What is the market value for each ordinary share upon the declaration of the share capital dividends?

a. 10 b. 8 c. 10 d. 25

4. What is the total amount of retained earnings?

a. 150,000 b.100,000 c. 450,000 d.700,000