Reference no: EM132767980

Questions -

Q1. Manic Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par value preference shares for a total of P350,000 cash and an equipment with acquisition cost of P900, 000, book value of P450, 000 and fair value of P500, 000. On that date, the fair value of ordinary shares is P30. How much is allocated to the preference shares? Prepare the journal entry to record the issuance of the shares.

Q2. Cruella Co. has the following shareholders' equity accounts: 8% Preference Share, P10 par P200,000 Ordinary share, P6 par P300,000, Accumulated Profit P100,000. Dividends have not been declared for 3 years including the current year. On October 1, a cash dividend of P80,000 has been declared by the Board of Directors. Assuming that the preference share is cumulative and fully participating, compute for the dividend per share for preference share.

Q3. On January 1, 2020, San Antonio Corporation granted its president 50,000 share appreciation rights. The rights are exercisable immediately and expire on December 31, 2021. On exercise, the president is entitled to receive cash for the excess of the share market price on exercise date over the market price on grant date. The president did not exercise any of the rights in 2020. The market price of the share was P100 on January 1, 2020 and P115 on December 31, 2021. The president exercised the rights on December 31, 2021 when the market price was P110. As a result of the share appreciation rights, San Antonio Co. shall recognize gain on reversal of share appreciation rights in 2021 at?