[cherysjenahne]

The shareholders equity section of Balocating corporation statement of financial position at the close of the current year follows:

8% Preference Shares, 100 par, 30,000 shares authorized, 1,000,000
10,000 shares issued
Ordinary Shares, no-par, stated value of 5, 200,000 shares 750,000
Authorized
Share Premium-Preference 130,000
Share Premium-Ordinary 3,300,000
Retained Earnings 1,400,000

Total Shareholders Equity = 6,580,000


Required:
1. What is the amount of the annual dividend on preference shares ?
2. How many ordinary shares have been issued ?
3. What is the average price paid by the shareholders for the preference shares ?
4. What is the average price paid by shareholders for the ordinary shares ?
5. How many ordinary shares are currently outstanding ?
6. If the dividends of 287,200 were paid to shareholders in the current year, how much was paid to the ordinary shareholders assuming that no preference dividends are in arrears ?

[pready]

For number 1, simply take the par value times the percentage times the number of shares of issued.

For number 2. Based on how you have posted your information simly take your account balance of $750,000 divided by the stated value of the common stock.

For number 3 and 4 you need to add the share peremium amounts to stock balances then divide the amount by the number of shares issued.

For number 5 if you do not have any treasury stock then the amount of shares outstanding will be the samee amount that was issued.

For number 6 simply subtract the amount calculated in number one from your total dividends.

From the way your common stock is posted it looks like you have 200,000 shares authorized and your account balance is $750,000 with a stated value for $5 a share. The format for preferred and ordinary share is incorrect and makes it hard to understand. This may be on purpose to see if you understand the information provided.

[ralph_delacruz]

I think number six answer is this:
preference Ordinary Total
Outstanding Capital 1,000,000 750,000 1,750,000
_______________________________________________
Current preference dividends:
P 287,200 x .08 22,976 22,976
P 287,200 - 22,976 _________ 264, 224 264,224
total P 22,976 P 264,224 P 287,200
Dividend per share P8.00 P 92.00


since no preference dividends are in arrears the total dividends must be divided to preference share's percentage and the remaining will be given to ordinary shareholders.