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RgSA: The Review Sctroot o,f Acountancy Page 13 of 14

Heat acguired all the outstanding stock of Raptors Corporation on May l, 2072 in exchange for
20,000 Heat ordinary shares.
Heat effected a stock split on its ordinary shares 3 for 2 on January t, 2Ol3 and 2 for 1 on
January t,2Ot4.
Heat offered to convert ?OYo of preference shares to common shares on the basis of 2 shares of
common for every share of preference. The offer was accepted and the conversion was made on
)qtly l,2Ot4.
No cash dividends were declared on orilinary shares until December 31, 2012. Cash dividends
per share of ordinary were declared and paid as follows:
December 37,2OL2 P3.20
June 30, 2013 1.50
December 31, 2013 2.50
June 30, 2014 1.25
December 3L,2Ot4 1.00

Based on the information above and as a result of youraudit, answerthe following:


99. The number of ordinary and preference shares outstanding at the end of 2014, respectively?
a. 190,400 and 16,000 c. 186,40O and 15,680
b. 99,200 and 20,000 d. 186,400 and 16,000
100. Balances of the Ordinary and Preference Share accounts at the end of 2011, respectively?
a. 400,000 and 2,000,000 c. 500,000 and 2,000,000
b. 408,000 and 2,000,000 d. 404,000 and 1,950,000
101. The amount of cash dividends declared and paid to ordinary shares in 2013?
a. 364,8O0 c. 319,2O0
b. t67,2AA d. 243,2AO
102. The amount of cash dividends declared and paid to ordinary shares in 2Ol4?
a. 428,40O c. 306,400
b. 434,4A0 d. 4t8,4OA

PROEI.-E-}i 2E: Nevada Square has the following selected accounts in its shareholders'equity section as
I of December 31, 2O13:
Preference shares, P1OO par, 1O percent cumulative,
lOO,OOO shares issued and outstanding P1O,OOO,0OO
Ordinary shares, P2A gar, 1,0OO,00O shares authorized,
I 700,000 shares issued and out5tanding 14,O0O,OO0
Share premium 9,000,000
Accumulated profits 30,000,000
There are no dividends in arrears on the preference shares. During 2014, the following transactions
occurred;
a. The board of directors declared a cash dividend totalinq to p2,SOO,OOO to be paid to preference
and ordinary shareholders. Later, a share dividend of ioo,ooo ordinary shares were declared on
ordinary shares. The market vatue of ordinary shares is P68 per share on the date the share
dividends were declared.
b' Sometime after the above dividends were declared and settled, the board of directors declared as
property dividends one shares of its investment in Bingo Corp. stocks being held by the company
as tradlng secu.rities for every two ordinary share outstanding. Bingo Corp. stocks were originaliy
purchased by the company at PLz per share and have a carrying value based on their fair value
as per the last remeasurement (balance sheet) date, at P2O per share. Bingo Corp. shares were
selling at P24 when the property dividends were declared and were setling jt pZS when the
property dividends were settled. The company had a total of 50O,00O shares of Bingo Corp.
shares.
c. At the end of 2014, the board declares a four-for-one share split. With the split, the number of
ordinary shares authorized to be issued increased to 4r00Or0OO. At the date of the share split,
the market value of ordinary share is P75 per share.
d. Net earnings during 2014 total P6,0OO,OOO. '

Required:
103. What is the adjusted balance of the company's Accumulated profit account at the end of year?
a. P26,400,000. c. P18,400,000
b. P21,600,000. d. P16,400,000.
104. What is the balance of the ordinary shares account as of Decernber 31, 2OL4?
a. P14,00O,000. c. P18,000,000.
b. P16,OOO,00O. d. P20,800,000.
1O5. What is the balance of the share premium account as of December 3]-, 2Ol4?
a. P8,0O0,000. c. P12,800,000.
b. P10,800,000. d. Pl4,800,000.

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