Problem 1:
On Jan 24, 2024, the BOD of XXX Co. declared ₱50 dividends per share to shareholders of record as of Jan 15, 2024 for distribution on Feb 24,
2024. The shareholders’ equity of XXX as of Jan 15, 2024 is as follows:
Share capital, authorized capital 20,000 shares, ₱100 par 1,600,000
Subscribed share capital 400,000
Share premium 200,000
Retained earnings 908,000
Treasury shares (at cost of ₱120 per share) (288,000)
Other components of equity 140,000
Total shareholders’ equity 2,960,000
Requirement: Provide all the pertinent entries.
Problem 2:
On April 24, 2025, YYY Co. declared share dividends on a “1 share dividend for every 10 shares held” basis to shareholders of record as of April
15, 2025 for distribution on May 24, 2025. The market price per share on declaration date is ₱120. YYY’s shareholders’ equity immediately
before dividend declaration is shown below:
Share capital, authorized capital 20,000 shares, ₱100 par 1,200,000
Subscribed share capital 330,000
Share premium 200,000
Retained earnings 908,000
Treasury shares (at cost of ₱120 per share) (408,000)
Other components of equity 200,000
Total shareholders’ equity 2,430,000
Requirement: Provide all the pertinent entries.
Problem 3:
On Jun 24, 2025, ZZZ Co. declared share dividends on a “1 share dividend for every 5 shares held” basis to shareholders of record as of Jun 15,
2025 for distribution on Jul 24, 2025. The market price per share on declaration date is ₱150. ZZZ’s shareholders’ equity immediately before
dividend declaration is shown below:
Share capital, authorized capital 20,000 shares, ₱100 par 1,500,000
Subscribed share capital 200,000
Share premium 200,000
Retained earnings 908,000
Treasury shares (at cost of ₱120 per share) (120,000)
Other components of equity 200,000
Total shareholders’ equity 2,888,000
Requirement: Provide all the pertinent entries.
Problem 4
WWW company owned 10,000 shares of equity securities of Dandy Company with carrying
amount of P90 per shares. On October 31, 2024, WWW Company declared these shares as property
dividend to be paid on March 31, 2025.
The quoted price for Dandy shares is P130 on October 31, 2024, P150 on December 31, 2024
and P110 on March 31, 2025.
Requirement: Provide all the pertinent entries
