Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equ accounts with balances as of Jan. 1, 2018 are as follows: Ordinary Shares, P25 stated value, 100,000 shares authorized, 50,000 shares issued Share Premium Appropriation for Plant Expansion Appropriation for Treasury Stock Retained Earnings P1,250,000 250,000 150,000 80,000 725,000 Treasury Stock, 2,500 shares, at cost • 80,000 The following selected transactions occurred during the year: Received donated land with a fair market value of P100,000. Paid cash dividends of Pi per share on the ordinary shares. dividend had been properly recorded when declared on Dec. 30 of the preceding fiscal year for P47,500. Sold all of the treasury stock for P95,000. Issued 6,000 ordinary shares for P240,000.. Declared a 2% share dividend on ordinary shares, to be capitalized at the market price of the stock, which is P40 a share. Issued the certificates for the.dividend declared on July 1. Purchased 2,000 shares of treasury stock for P72,000. The board of directors authorized an increase of the appropriation for plant expansion by P50,000. Declared a PO.50 per share dividend on ordinary shares. Decreased the appropriation for treasury stock to P72,000. Closed the credit balance of the income summary account, P169,400. Closed the two dividends accounts to Retained Earnings. Jan. 20 29 The Mar. 3 Apr. 1 July 1 Aug. 11 Nov. 20 Dec. 21 21 21 31 31 Required: 1. Enter the Jan. 1 balances in T-accounts for the shareholders' equity accounts. 2. Journalize and post the transactions. 3. Prepare the shareholders' equity section of the statement of financial position Dec. 31, 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Complete solution of shareholders’ equity of statement of financial position please. Thanks.

Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equ
accounts with balances as of Jan. 1, 2018 are as follows:
Ordinary Shares, P25 stated value, 100,000 shares
authorized, 50,000 shares issued
Share Premium
P1,250,000
250,000
150,000
80,000
Appropriation for Plant Expansion
Appropriation for Treasury Stock
Retained Earnings
Treasury Stock, 2,500 shares, at cost
725,000
80,000
The following selected transactions occurred during the year:
Received donated land with a fair market value of P100,000.
Paid cash dividends of P1 per share on the ordinary shares. The
dividend had been properly recorded when declared on Dec. 30 of the
preceding fiscal year for P47,500.
Sold all of the treasury stock for P95,000.
Issued 6,000 ordinary shares for P240,000..
Declared a 2% share dividend on ordinary shares, to be capitalized at
the market price of the stock, which is P40 a share.
Issued the certificates for the.dividend declared on July 1.
Jan. 20
29
Mar. 3
Apr. 1
July 1
Aug. 11
Purchased 2,000 shares of treasury stock for P72,000.
The board of directors authorized an increase of the appropriation for
plant expansion by P50,000.
Declared a PO.50 per share dividend on ordinary shares.
Decreased the appropriation for treasury stock to P72,000.
Closed the credit balance of the income summary account, P169,400.
Closed the two dividends accounts to Retained Earnings.
Nov. 20
Dec. 21
21
21
31
31
Required:
1. Enter the Jan. 1 balances in T-accounts for the shareholders' equity accounts.
2. Journalize and post the transactions.
Prepare the shareholders' equity section of the statement of financial position a
Dec. 31, 2018.
3.

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.

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