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An entity reported the following equity on December 31, 2023: Ordinary share capital, P25 par value, 400,000 shares issued : 10,000,000 Share premium- ordinary : 4,250,000 Retained earnings : 15,000,000 The following events occurred during 2023: February 1 : 12,000 ordinary shares were sold for P40 per share. March 16 : Declared and paid cash dividend of P1 per share to the ordinary shareholders. March 20 :  20,000, 10% P50 par value cumulative preference shares were sold for P60 per share. The preference shares have a liquidation price of P55 per share. March 31 : 30% ordinary share dividend was issued. Fair value per share is currently P45. April 15 : A 2-for-1 split was carried out on the ordinary shares. July 1 : 30,000 preference shares were sold for P70 per share. October 1 : 50,000 ordinary shares were sold for P30 per share. December 31 : Net income for the year was P2,250,000. What amount of ordinary share capital should be reported on December 31, 2023?   14,015,000 15,265,000 16,515,000 28,030,000

An entity reported the following equity on December 31, 2023: Ordinary share capital, P25 par value, 400,000 shares issued : 10,000,000 Share premium- ordinary : 4,250,000 Retained earnings : 15,000,000 The following events occurred during 2023: February 1 : 12,000 ordinary shares were sold for P40 per share. March 16 : Declared and paid cash dividend of P1 per share to the ordinary shareholders. March 20 :  20,000, 10% P50 par value cumulative preference shares were sold for P60 per share. The preference shares have a liquidation price of P55 per share. March 31 : 30% ordinary share dividend was issued. Fair value per share is currently P45. April 15 : A 2-for-1 split was carried out on the ordinary shares. July 1 : 30,000 preference shares were sold for P70 per share. October 1 : 50,000 ordinary shares were sold for P30 per share. December 31 : Net income for the year was P2,250,000. What amount of ordinary share capital should be reported on December 31, 2023?   14,015,000 15,265,000 16,515,000 28,030,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity reported the following equity on December 31, 2023:
  • Ordinary share capital, P25 par value, 400,000 shares issued : 10,000,000
  • Share premium- ordinary : 4,250,000
  • Retained earnings : 15,000,000

The following events occurred during 2023:
  • February 1 : 12,000 ordinary shares were sold for P40 per share.
  • March 16 : Declared and paid cash dividend of P1 per share to the ordinary shareholders.
  • March 20 :  20,000, 10% P50 par value cumulative preference shares were sold for P60 per share. The preference shares have a liquidation price of P55 per share.
  • March 31 : 30% ordinary share dividend was issued. Fair value per share is currently P45.
  • April 15 : A 2-for-1 split was carried out on the ordinary shares.
  • July 1 : 30,000 preference shares were sold for P70 per share.
  • October 1 : 50,000 ordinary shares were sold for P30 per share.
  • December 31 : Net income for the year was P2,250,000.
What amount of ordinary share capital should be reported on December 31, 2023?
 
14,015,000
15,265,000
16,515,000
28,030,000
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