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Acctg 104 3158

The document discusses three types of preference shares - non-cumulative and non-participating, cumulative and non-participating, and cumulative and fully participating - and how dividends would be distributed for each type based on a sample capital structure. For the non-cumulative preference shares, a dividend of $50,000 is distributed and the remaining balance is $1,190,000. For the cumulative non-participating shares, $200,000 in dividends are distributed, leaving a $1,040,000 balance. For the cumulative fully participating shares, total dividends of $300,000 are distributed and the remaining balance is split between preference and ordinary shares.

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81 views4 pages

Acctg 104 3158

The document discusses three types of preference shares - non-cumulative and non-participating, cumulative and non-participating, and cumulative and fully participating - and how dividends would be distributed for each type based on a sample capital structure. For the non-cumulative preference shares, a dividend of $50,000 is distributed and the remaining balance is $1,190,000. For the cumulative non-participating shares, $200,000 in dividends are distributed, leaving a $1,040,000 balance. For the cumulative fully participating shares, total dividends of $300,000 are distributed and the remaining balance is split between preference and ordinary shares.

Uploaded by

hyunsuk fhebie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Non-Cumulative and Non participating

Preference Share
Preference Dividends
Current - P1,000,000 x 5% X 1 year = P50,000 50,000
Total 50,000
Balance (1,240,000 - 50,000) P1,190,000

Ordinary Dividends
Balance
As distributed 50,000

Dividend by issued shares 20,000

Dividend per share 2.5

Cumulative and Non Participating


Preference Share
Preference Dividends
Arrears - P1,000,000 x 5% x 3 yrs. 150,000
Current P1,000,000 X 5% x 1 yr. 50,000
Total 200,000
Balance (1,240,000 - 200,000) P1,040,000

Ordinary Dividends
Balance
As distributed 200,000

Dividends by issued shares 20,000

Dividends per share 10

Cumulative and Fully Participating


Preference Share
Preference Dividends
Arrear - P1,000,000 x 5% x 3 yrs. 150,000
Current P1,000,000 x 5% x 1 yr. 50,000
Total 200,000
Balance 1,240,000 - 300,000 = 940,000

Ordinary Dividends
Balance
As distributed 200,000

Preference Shares = P1,000,000 / 1,750,000 537,142.86


x 940,000

Ordinary Shares = 750,000 / 1,750,000


x 940,000

Grand Total 737,142.86

Dividends by issued shares 20,000

Dividends per share 36.86


erence Share Ordinary Share Total

50,000
50,000

1,190,000 1,190,000
1,190,000 1,240,000

10,000

119

erence Share Ordinary Share Total

150,000
50,000
200,000

1,040,000 1,040,000
1,040,000 1,240,000

10,000

104

erence Share Ordinary Share Total

150,000
50,000
200,000

100,000 100,000
940,000 940,000
100,000 300,000

537,142.86

402,857.14 402,857.14

502,857.14 1,240,000.00

10,000

50.29

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