14. Prepare the shareholders’ equity section of the statement of financial position of Knicks Corporation as of December 31, 2019.15. What should be the balance of the Retained Earnings as of December 31, 2019? ______________ The capital accounts of Knicks Corporation on December 31, 2018 showed the following accountsincluded in the shareholders' equity:14.P 15,000,00010%Preference Share Capital, 300,000 sharesOrdinary Share Capital, 3,000,000 shares30,000,000Preference Share Premium3,000,000Ordinary Share PremiumRetained Earnings15,000,00013,500,000During the year 2019, the following transactions took place.2 Issued 7,500 preference shares at P 60 per shareJan1 Issued 12,500 ordinary shares at P 25 per share1 2 for 1 share split1 Reacquired 10,000 ordinary shares at P 14 per share30 Reissued 7,500 treasury shares at P 16 per shareProfit for the year amounted to P 1,250,000.31 Declared regular dividend to preference shares and P 2.00 dividend per share onordinary shares.MarMayJulySeptDec31DecPrepare the shareholders' equity section of the statement of financial position of KnicksCorporation as of December 31, 2019.15.The following data were taken from the accounts of Miami Heat Corporation as at December 31,2019:Total net income since incorporationP 840,000Proceeds from sale of donated shares90,000Scrip dividends declared payable on Jan. 5, 2020Ordinary share capital dividend distributableExcess of proceeds over cost from sale of treasury shares65,00060,000What should be the balance of the Retained Earnings as of December 31, 2019?

Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Answered: 14. The capital accounts of Knicks…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

14. Prepare the shareholders’ equity section of the statement of financial position of Knicks Corporation as of December 31, 2019.

15. What should be the balance of the Retained Earnings as of December 31, 2019? ______________

The capital accounts of Knicks Corporation on December 31, 2018 showed the following accounts
included in the shareholders' equity:
14.
P 15,000,000
10%Preference Share Capital, 300,000 shares
Ordinary Share Capital, 3,000,000 shares
30,000,000
Preference Share Premium
3,000,000
Ordinary Share Premium
Retained Earnings
15,000,000
13,500,000
During the year 2019, the following transactions took place.
2 Issued 7,500 preference shares at P 60 per share
Jan
1 Issued 12,500 ordinary shares at P 25 per share
1 2 for 1 share split
1 Reacquired 10,000 ordinary shares at P 14 per share
30 Reissued 7,500 treasury shares at P 16 per share
Profit for the year amounted to P 1,250,000.
31 Declared regular dividend to preference shares and P 2.00 dividend per share on
ordinary shares.
Mar
May
July
Sept
Dec
31
Dec
Prepare the shareholders' equity section of the statement of financial position of Knicks
Corporation as of December 31, 2019.
15.
The following data were taken from the accounts of Miami Heat Corporation as at December 31,
2019:
Total net income since incorporation
P 840,000
Proceeds from sale of donated shares
90,000
Scrip dividends declared payable on Jan. 5, 2020
Ordinary share capital dividend distributable
Excess of proceeds over cost from sale of treasury shares
65,000
60,000
What should be the balance of the Retained Earnings as of December 31, 2019?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions