1.

2.
AFTER TAX INCOME, 2023 1.95M – 1.2M declared dividends = 750,000 2023 RE
PRIOR YEARS INCOME 6,700 – 3,500 = 3,200 RE PRIOR
TOTAL 8,650 – 4,700 = 3,950,000 // C
4.
Total outstanding shares @par:

Preference Ordinary TOTAL

Par value of issued 6M 14.6M 20,600,000
Less: ordi-treasury @par (600,000) (600,000)
Total outstanding @par 6M 14M 20,000,000

Assumption 1: noncumulative; nonparticipative

Cash dividends – preference:
Outstanding pref. 6M x 9% = 540,000 // C
Attributable to ordinary 2M – 540,000 = 3.46M // B

Assumption 2: cumulative, participating

Total allocation to preference shares: 1,956,000 // D
+ 6M x 9% = 540,000 (initial allocation)
+ 540K x 2 yrs. = 1,080,000 (initial allocation)
+ 6/20 x 1.12M = 336,000

Total allocation to ordinary shares: 2,044,000 // A

+ 14M x 9% = 1.26M (initial allocation)
+ 14/20 x 1.12M = 784,000

4M–initial allocation (2.88M) = 1,120,000  remainder

Ordinary  14/20 x 1.12M = 784,000 //
Preference  6/20 x 1.12M = 336,000 //
5.
 6.

UNAPPROPRIATED RETAINED EARNINGS

Increase in contingency appro., 400,000
Declared dividends, 450,000
Ending balance, squeezed, 6,940,000 // C
7,790,000
5,000,000, beginning balance
1,800,000, decrease in appropriation for bldg. cons
390,000, decrease in appropriation for treasury
600,000 profit
7,790,000

Total appropriated earnings:

Contingency, 2,400,000
Appro treasury 450,000
TOTAL = 2,850,000 // B

7.
PPE 8M
Revaluation surplus 8M

Retained earnings 500,000

Inventory 500,000

Adjusted balance of deficit in RE = (6M + 500K) = 6,500,000

Revaluation surplus 6,500,000

Retained earnings 6,500,000

Adjusted balance of revaluation surplus = 8M – 6.5M = 1.5M

Maximum amount of dividends that can be declared as of subsequent reporting date:

Subsequent net income earned, 11,000,00
Less: updated deficit balance, (6,500,000)
TOTAL 4,500,000 // B