GROUP ASSIGNMENTS

PPAK FEB UGM

October 30, 2017

Case 1
Gatutkaca Corporation has the following capital structure at the beginning of the year:

Share capitalpreference 6%, $50 par value, 20,000 shares authorized,

6,000 shares issued and outstanding $ 300,000
Share capitalordinary, $10 par value, 60,000 shares authorized,
40,000 shares issued and outstanding 400,000
Share premiumordinary 110,000
Retained earnings 440,000
Total equity $1,250,000

Instructions & Solutions :

(a) Record the following transactions which occurred consecutively (show all calculations).
1. A total cash dividend of $90,000 was declared and payable to shareholders of record. Record
dividends payable on ordinary and preference shares in separate accounts.
Retained Earnings 90,000
Devidend payable preferences:(6%x 300.000) 18,000
Devidend payable common: 72,000
Devidend payable- preference 18,000
Devidend payable- common 72,000
Cash 90,000

2. A 10% ordinary share dividend was declared. The average fair value of the ordinary shares is $18
a share.
Retained earnings (common shares) 72,000
Common stock dividend distribute 40,000
Paid- in capital in excess at par 32,000
3. Assume that net income for the year was $150,000 (record the closing entry) and the board of
directors appropriated $70,000 of retained earnings for plant expansion.

Income summary 150,000

Retained Earnings 150,000

Retained earnings 70,000

Retained earnings for plant expansion 70,000
(b) Construct the equity section incorporating all the above information.

STOCKHOLDER EQUITY
Share capitalpreference 6%, $50 par value, 20,000 shares authorized,
6,000 shares issued and outstanding $ 300,000
Share capitalordinary, $10 par value, 60,000 shares authorized,
40,000 shares issued and outstanding 400,000
Common stock dividend distributable 40,000
Paid in capital excess of par 142,000
Total paid in capital 882,000

Retained earnings in appropriate 358,000

Appropriate for plant expense 70,000
total retained earnings 428,000
TOTAL STOCKHOLDER equity 1,310,000

Case 2
Srikandi, Inc., has $800,000 of 8% preference shares and $1,200,000 of ordinary shares outstanding, each
having a par value of $10 per share. No dividends have been paid or declared during 2014 and 2015. As of
December 31, 2016, it is desired to distribute $488,000 in dividends.

Instructions & Solutions

How much will the preference and ordinary shareholders receive under each of the following assumptions:

(a) The preference is noncumulative and nonparticipating.

Preference: 800.000 x 8% 64.000
Ordinary: 1200000x 8%: 96.000
perusahaan tidak memiliki kewajiban untuk membayar deviden tahun sebelumnya

(b) The preference is cumulative and nonparticipating.

Preference: 800.000x 8% x3 years: 192.000
Ordinary: 1,200,000x 8% x 3 years: 288,000

(c) The preference is cumulative and fully participating.

Preference:800,000x8%x 3 years: 192.000
Ordinary: 1,200,000x8%x 3 years: 288,000
Preference cause of participation : 8,000

(d) The preference is cumulative and participating to 12% total.

Preference: 800,000x 12% x 3 years: 288.000
Ordinary devidend (488,000-288,000) 200.000
Case 3
Sriwedari Corp. had $500,000 net income in 2016. On January 1, 2016 there were 200,000 ordinary shares
outstanding. On April 1, 20,000 shares were issued and on September 1, Sriwedari bought 30,000 treasury
shares. There are 30,000 options to buy ordinary shares at $40 a share outstanding. The market price of the
ordinary shares averaged $50 during 2016. The tax rate is 40%.

During 2016, there were 40,000 shares of convertible preference shares outstanding. The preference is $100
par, pays $3.50 a year dividend, and is convertible into three ordinary shares.
Sriwedari issued $2,000,000 of 8% convertible bonds at face value during 2015. Each $1,000 bond is
convertible into 30 ordinary shares.

Instructions
Compute diluted earnings per share for 2016 and show all computations.

Net Adjust- Adjusted Adjust- Adjusted

Security Income ment Net Income Shares ment Shares EPS
Ord. Shares
Options
Bonds
Preference