Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The shareholders' equity section of the balance sheet of YK Corporation (with certain details omitted) appears below: Shareholders' equity: 8 % preference share, $100 par,

image text in transcribed

The shareholders' equity section of the balance sheet of YK Corporation (with certain details omitted) appears below: Shareholders' equity: 8 % preference share, $100 par, 100,000 shares authorized ?? shares issued $1,900,000 Ordinary Share, $5 par, 200,000 shares authorized, ?? shares issued 1,000,000 Share premium: Preference share Ordinary share 106,000 1,970,000 Issued and fully paid capital: Retained earnings $4,976,000 1,170,000 Total shareholders' equity $6,146,000 Answer the following questions based on the shareholders' equity section given above. Show your calculation clearly. (a) What is the total amount of legal capital (Total par value amount)? (3 marks) (b) What is the total amount of dividends paid annually to the preference shareholders? (3 mark) (c) What is the average issue price of a share of ordinary share? (5 marks) (d) The balance in retained earnings at the beginning of the current year was $1,350,000, and there were no dividends in arrears. Profit for the current year was $800,000. What is the amount of the dividends declared on each share of ordinary share during the current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Complete Guide To Perform Internal And External Audits

Authors: Tim Power

1st Edition

1801490031, 978-1801490030

More Books

Students also viewed these Accounting questions

Question

L A -r- P[N]

Answered: 1 week ago

Question

4. Label problematic uses of language and their remedies

Answered: 1 week ago