The equity accounts of Lawrence Company have the following balances on January 1, 2019:Ordinary share capital, P10 par, 200,000 shares issued and outstandingP 2,000,000Share premium – ordinary1,200,000Retained earnings5,600,000The following events had occurred during the year 2019.A share dividend of 5% is declared and issued. Shares are selling at P37 during this period.A share dividend of 100% is declared and issued. Shares are selling at P29 during this period. A 2 for 1 share split is declared and issued. Retired 17,500 shares.Compute for the ordinary shares outstanding for the year ended December 31, 2019.

Share capital are the main nerves of the company for any establishment. They are considered as the…

Answered: Compute for the ordinary shares…

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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The equity accounts of Lawrence Company have the following balances on January 1, 2019:

Ordinary share capital, P10 par, 200,000 shares issued and outstanding	P 2,000,000
Share premium – ordinary	1,200,000
Retained earnings	5,600,000

The following events had occurred during the year 2019.

A share dividend of 5% is declared and issued. Shares are selling at P37 during this period.
A share dividend of 100% is declared and issued. Shares are selling at P29 during this period.
A 2 for 1 share split is declared and issued.
Retired 17,500 shares.

Compute for the ordinary shares outstanding for the year ended December 31, 2019.

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