Required: (a) Prepare a statement of changes in equity and determine the December 31, 2018 balances of the following: b (1) Preference share capitalIAq oas (2) (3) Ordinary share capital Total additional paid in capital Retained earmings Treasury shares Unrealized gains and losses on non-current equity investments (in equity section; disregard income tax.) Total shareholders' equity 0.000 (4) (5) (6) (7) (b) Compute the following: Average number of ordinary shares that will be used to compute earnings per share Basic earnings per share (8) (9) Prepare the shar (b) financial position at Decen to shareholders' equity 1. The following information relates Preference Share Capital, 12%, P50 par cumulative, 10,000 shares authorized Ordinary Share Capital, P1 stated value, 2,000,000 shares authorized Share Premium - Preference Paid in Capital in Excess of Stated Value Retained Earnings P 400,000 1,000,000 80,000 1,400,000 1,816,000 40,000 Treasury Shares - Ordinary (10,000 shares) During 2018, the corporation had the following transactions and events pertaining to its shareholders' equity: Issued 20,000 ordinary shares for P100,000 Sold 6,000 treasury shares for P28,000. Issued 5,000 shares of ordinary share capital for a piece of equipment with cash price of P25,000. Purchased 1,000 shares of ordinary for the treasury at a cost of P6,000. Declared the annual dividend on preference share and PO.20 cash dividend on ordinary share. Determined that profit for the year was P377,000 Feb. 1 Apr. 30 Sept. 1 Nov. 2 Dec. 31 31 31 The fair value of non-current equity investments at fair value increased from P150,000 to P170,000 from beginning to end of the year. Beginning balance of Unrealized Gains or Losses on Non-current Equiy Investments is P5,000 credit. 4006
Required: (a) Prepare a statement of changes in equity and determine the December 31, 2018 balances of the following: b (1) Preference share capitalIAq oas (2) (3) Ordinary share capital Total additional paid in capital Retained earmings Treasury shares Unrealized gains and losses on non-current equity investments (in equity section; disregard income tax.) Total shareholders' equity 0.000 (4) (5) (6) (7) (b) Compute the following: Average number of ordinary shares that will be used to compute earnings per share Basic earnings per share (8) (9) Prepare the shar (b) financial position at Decen to shareholders' equity 1. The following information relates Preference Share Capital, 12%, P50 par cumulative, 10,000 shares authorized Ordinary Share Capital, P1 stated value, 2,000,000 shares authorized Share Premium - Preference Paid in Capital in Excess of Stated Value Retained Earnings P 400,000 1,000,000 80,000 1,400,000 1,816,000 40,000 Treasury Shares - Ordinary (10,000 shares) During 2018, the corporation had the following transactions and events pertaining to its shareholders' equity: Issued 20,000 ordinary shares for P100,000 Sold 6,000 treasury shares for P28,000. Issued 5,000 shares of ordinary share capital for a piece of equipment with cash price of P25,000. Purchased 1,000 shares of ordinary for the treasury at a cost of P6,000. Declared the annual dividend on preference share and PO.20 cash dividend on ordinary share. Determined that profit for the year was P377,000 Feb. 1 Apr. 30 Sept. 1 Nov. 2 Dec. 31 31 31 The fair value of non-current equity investments at fair value increased from P150,000 to P170,000 from beginning to end of the year. Beginning balance of Unrealized Gains or Losses on Non-current Equiy Investments is P5,000 credit. 4006
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Required:
(a)
Prepare a statement of changes in equity and determine the
December 31, 2018 balances of the following:
b (1) Preference share capitalIAq oas
(2)
(3)
Ordinary share capital
Total additional paid in capital
Retained earmings
Treasury shares
Unrealized gains and losses on non-current equity
investments (in equity section; disregard income
tax.)
Total shareholders' equity
0.000 (4)
(5)
(6)
(7)
(b) Compute the following:
Average number of ordinary shares that will be used
to compute earnings per share
Basic earnings per share
(8)
(9)
Transcribed Image Text:Prepare the shar
(b)
financial position at Decen
to shareholders'
equity
1.
The following information relates
Preference Share Capital, 12%, P50 par
cumulative, 10,000 shares authorized
Ordinary Share Capital, P1 stated value,
2,000,000 shares authorized
Share Premium - Preference
Paid in Capital in Excess of Stated Value
Retained Earnings
P 400,000
1,000,000
80,000
1,400,000
1,816,000
40,000
Treasury Shares - Ordinary (10,000 shares)
During 2018, the corporation had the following transactions and
events pertaining to its shareholders' equity:
Issued 20,000 ordinary shares for P100,000
Sold 6,000 treasury shares for P28,000.
Issued 5,000 shares of ordinary share capital for a
piece of equipment with cash price of P25,000.
Purchased 1,000 shares of ordinary for the treasury
at a cost of P6,000.
Declared the annual dividend on preference share
and PO.20 cash dividend on ordinary share.
Determined that profit for the year was P377,000
Feb.
1
Apr. 30
Sept. 1
Nov. 2
Dec. 31
31
31
The fair value of non-current equity investments at
fair value increased from P150,000 to P170,000 from
beginning to end of the year. Beginning balance of
Unrealized Gains or Losses on Non-current Equiy
Investments is P5,000 credit.
4006
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