1. The shareholder's equity on January 1, 2023 amounts to 2. The number of Merry's ordinary shares outstanding as of December 31, 2023 amounts to 3. How much is Merry's legal capital on December 31, 2023 amounts to 4. How much is the balance of contra-equity accounts as of December 31, 2023? 5. How much is the net increase/(decrease) in equity due to the subscription of NY on September 30, 2023? 6. The total amount of share premium as of December 31, 2023 amounts to 7. How much dividends payable should be recognized on December 31, 2023? 8. How much is the shareholder's equity balance as of December 31, 2023?
1. The shareholder's equity on January 1, 2023 amounts to 2. The number of Merry's ordinary shares outstanding as of December 31, 2023 amounts to 3. How much is Merry's legal capital on December 31, 2023 amounts to 4. How much is the balance of contra-equity accounts as of December 31, 2023? 5. How much is the net increase/(decrease) in equity due to the subscription of NY on September 30, 2023? 6. The total amount of share premium as of December 31, 2023 amounts to 7. How much dividends payable should be recognized on December 31, 2023? 8. How much is the shareholder's equity balance as of December 31, 2023?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:PROBLEM 11
MERRY Corporation's had the following balances on January 1, 2023:
Ordinary Shares, P100 par value (28,000 issued shares)
Share premium in-excess of par - Ordinary Shares
10%, Preference Shares, P150 par value (12,000 issued and outstanding)
Share premium in-excess of par - Preference Shares
Redeemable Preference Shares
Treasury Shares - Ordinary Shares (repurchased 3,000 at P120)
Bond Conversion Privilege
Retained Earnings
*Note there are no other equity items, aside from those listed above.
P2,800,000
1,200,000
1,800,000
600,000
1,000,000
360,000
200,000
950,000
The following transactions took place during 2023:
• On March 6, 2023, MERRY issued 10,000 Ordinary Shares for P152.
• On April 22, 2023, MERRY repurchased 5,000 of the company's own Ordinary Shares for P130.
• On June 27, 2023, MERRY issued a 4-for-2 share split on its Ordinary Shares
• On September 30, 2023, NY Corporation subscribed 5,000 of MERRY Corporation's Ordinary shares for P135. No downpayment was made.
On December 25, 2023, a shareholder donated 1,000 of MERRY's own ordinary shares back to the corporation.
• On December 27, 2023, MERRY declared a P2.50 dividends to Ordinary Shareholders and P30.00 dividends to Preference Shareholders, payable on January 8, 2024.
• Net income during 2023 amounts to P545,000.
Questions:
1. The shareholder's equity on January 1, 2023 amounts to
2. The number of Merry's ordinary shares outstanding as of December 31, 2023 amounts to
3. How much is Merry's legal capital on December 31, 2023 amounts to
4. How much is the balance of contra-equity accounts as of December 31, 2023?
5. How much is the net increase/(decrease) in equity due to the subscription of NY on September 30, 2023?
6. The total amount of share premium as of December 31, 2023 amounts to
7. How much dividends payable should be recognized on December 31, 2023?
8. How much is the shareholder's equity balance as of December 31, 2023?
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