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The shareholders' equity of Joyful Corporation on December 31, 2014 shows the following account balances: 10% Preference share. 5.000 shares. P 100 parP500,000 12% Preference

  1. The shareholders' equity of Joyful Corporation on December 31, 2014 shows the following account balances:

10% Preference share. 5.000 shares. P 100 parP500,000

12% Preference share. 6.000 shares. PIOO par600.000

Ordinary share, 10,000 shares. P40 par400,000

Share premium320.000

Accumulated profits480.000

The 10% preference share is cumulative and fully participating, while the 12% preference share is non-cumulative and fully participating. The last payment dividends was on December 31, 2012. What is the book value per share Of shares?

A. P44.00

B. P59.68

C. P60.27

D. P102.80

2.)Imitation Company' s capital structure at December 31, 2013 is shown below:

Shares issued and outstanding:

Ordinary share200,000

Nonconvertible preference share50,000

On October 1, 2014, Imitation issued 'a 10% share dividend on its ordinary shares, and paid P200,0OO cash dividends on the preference shares. Net income for the year ended December 31, 2014 was P1,920,000. How much should be the 2014 earnings per share of Imitation Company?

A. P7.82

B. P8.20

C. P8.72

D. P9.36

  1. On December 30, 2014, Fine Corporation sold merchandise for P75,OOO to Day COmpany. The terms of the sale were n/30, FOB Shipping point. merchandise was shipped on December 31, 2014, and arrived at Day Company on January 2, 2015. Due to a clerical error, the sale was not
  2. recorded until January 2015 and the merchandise, sold at a 25% markup on cost, was included in Fine's inventory at December 31, 2014. As a result, Fine's cost of goods sold for the year ended December 31. 2014 was

A. Understated by P15,000

B. Understated by P60,000

C. Understated by P70,000

D. Correctly stated

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