Ordinary capital 5-4 (PHILCPA Adapted) Problem parative Onorized ordinary shares of P5 par, of which 2,000,000 2020 sharee date showed the following balances: ,500,000 Share premium (000'00৮ Retained earnings 000'000'0 7,500,000 3,250,000 ,800,000) On January 5, Martha issued at P54 per share, 100,000 shares P50 par, 9% cumulative, convertible preference share anital. Martha had 250,000 authorized preference shares. 300,000 On February 1, Martha reacquired 20,000 ordinary shares For P16 per shaạre. Martha uses the cost method. 150,000) ,150,000 On April 30, Martha had completed an additional public offering of 500,000 ordinary shares with P5 par value. The shares were sold to the public at P12 per share. for 2020 On June 17, Martha declared a cash dividend of P1 per ordinary share, payable on July 10 to shareholders of record /on July 1. On November 6, Martha sold 10,000 shares of treasury for P21 per share. hod from n the two On December 7, Martha declared the yearly cash dividend on preference share, payable on January 7, 2021, to shareholders of record on December 31, 2020. 2020 450,000 400,000 On January 17, 2021, before the books were closed for 2020, Martha became aware that the ending inventory on December 31, 2019 was overstated by P200,000. reciation a arter-tax effect on 2019 net income was P140,000. The propriate correcting entry was recorded. After retained tor 2020 was P2,250,000. Required: Prepare
Ordinary capital 5-4 (PHILCPA Adapted) Problem parative Onorized ordinary shares of P5 par, of which 2,000,000 2020 sharee date showed the following balances: ,500,000 Share premium (000'00৮ Retained earnings 000'000'0 7,500,000 3,250,000 ,800,000) On January 5, Martha issued at P54 per share, 100,000 shares P50 par, 9% cumulative, convertible preference share anital. Martha had 250,000 authorized preference shares. 300,000 On February 1, Martha reacquired 20,000 ordinary shares For P16 per shaạre. Martha uses the cost method. 150,000) ,150,000 On April 30, Martha had completed an additional public offering of 500,000 ordinary shares with P5 par value. The shares were sold to the public at P12 per share. for 2020 On June 17, Martha declared a cash dividend of P1 per ordinary share, payable on July 10 to shareholders of record /on July 1. On November 6, Martha sold 10,000 shares of treasury for P21 per share. hod from n the two On December 7, Martha declared the yearly cash dividend on preference share, payable on January 7, 2021, to shareholders of record on December 31, 2020. 2020 450,000 400,000 On January 17, 2021, before the books were closed for 2020, Martha became aware that the ending inventory on December 31, 2019 was overstated by P200,000. reciation a arter-tax effect on 2019 net income was P140,000. The propriate correcting entry was recorded. After retained tor 2020 was P2,250,000. Required: Prepare
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare Changes in Equity for the year ended December 31, 2020.
Transcribed Image Text:Ordinary capital
5-4 (PHILCPA Adapted)
Problem
parative
Onorized ordinary shares of P5 par, of which 2,000,000
2020
sharee date showed the following balances:
,500,000
Share premium
(000'00৮
Retained earnings
000'000'0
7,500,000
3,250,000
,800,000)
On January 5, Martha issued at P54 per share, 100,000 shares
P50 par, 9% cumulative, convertible preference share
anital. Martha had 250,000 authorized preference shares.
300,000
On February 1, Martha reacquired 20,000 ordinary shares
For P16 per shaạre. Martha uses the cost method.
150,000)
,150,000
On April 30, Martha had completed an additional public
offering of 500,000 ordinary shares with P5 par value. The
shares were sold to the public at P12 per share.
for 2020
On June 17, Martha declared a cash dividend of P1 per
ordinary share, payable on July 10 to shareholders of record
/on July 1. On November 6, Martha sold 10,000 shares of
treasury for P21 per share.
hod from
n the two
On December 7, Martha declared the yearly cash dividend
on preference share, payable on January 7, 2021, to
shareholders of record on December 31, 2020.
2020
450,000
400,000
On January 17, 2021, before the books were closed for
2020, Martha became aware that the ending inventory on
December 31, 2019 was overstated by P200,000.
reciation
a arter-tax effect on 2019 net income was P140,000. The
propriate correcting entry was recorded.
After
retained
tor 2020 was P2,250,000.
Required:
Prepare
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