BM 99.2
Assignment #6
Problem #1
Un Deux Corporation has outstanding 60,000 shares of 5% preference shares with a ₱50 par value and 300,000
shares of ₱30 par value ordinary shares. During the year, the company declared and paid a total cash dividend of
₱900,000. The corporation did not declare and pay any dividends last year.
Required: For each of the following independent cases, compute the total dividends to be received by each class
of share.
1. The preference share is non-cumulative and non-participating (5 points)
2. The preference share is cumulative and non-participating (5 points)
3. The preference share is non-cumulative and participating (5 points)
4. The preference share is cumulative and participating (5 points)
Problem #2
The following selected accounts appeared in the general ledger of Trois Quatre Inc. on December 31, 2021:
4% Preference Shares, ₱50 par value
10,000 shares authorized; 7,000 shares issued
Share Premium – preference
Ordinary Shares, ₱20 par value
50,000 shares authorized; 25,000 shares issued
Share Premium – Ordinary
Retained Earnings
Total Shareholders’ Equity
₱350,000
28,000
500,000
90,000
537,000
₱1,505,000
During the year, the corporation completed several transactions affecting the shareholders’ equity. They are
summarized chronologically as follows:
a) Purchased 2,000 ordinary shares to be held as treasury for ₱55,000.
b) Sold 500 ordinary treasury shares for ₱16,000.
c) Issued 5,000 ordinary shares at ₱30, receiving cash.
d) Sold 1,000 preference shares at ₱52.50.
e) Sold 600 ordinary treasury shares for ₱15,600.
f) Declared cash dividends of ₱2 per share on preference shares and ₱1 per share on ordinary shares.
g) Paid the cash dividends.
h) The board of directors authorized the appropriation necessitated by the holding of the treasury shares.
i) The profit for the year was ₱165,000.
Required:
1. Prepare the statement of changes in shareholders’ equity for the year ending December 31, 2022 (10
points).
2. Prepare the shareholders’ equity section of the balance sheet as of December 31, 2022 (10 points).