Cookie Corporation reported the following amount in the shareholders’ equity section of its December 31, 2023, balance sheet: 10% Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued) P 400,000 Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) 100,000 Share premium 190,000 Retained earnings 1,200,000 The following transactions occurred during 2024: February 1 – Purchase 4,000 shares of its own outstanding ordinary shares for P80,000. March 1 – Ordinary shares were split 2 for 1. April 30 – Reissued 2,000 treasury ordinary shares for cash at P15 per share. June 30 – Issued 10,000 shares of preference shares at P15 per share. August 1 – Purchased 3,000 preference shares from June 30 issuance at P12 per share. September 1 – Declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share dividend on September 30. December 1 – Declared the annual dividend on preference shares and the P2.00 per share dividend on ordinary shares. These dividends are payable in 2025. December 31 – Registered a net income for 2024 at P800.000 Required: Determine the adjusted balances of the following accounts: .1.) Ordinary Shares - a.) 217,000 b.) 108,500 c.) 187,000 d.) 93,500 2.) Share premium - a.) 250,000 b.) 261,900 c.) 240,000 d.) 251,900 3.) Retained Earnings unappropriated - a.) 1,761,800 b.) 1,857,800 c. 1,854,800 d.1,758,800 4.) total stockholder's equity - a. 2,728,200 b. 2.602,200 c. 2,623,200
Cookie Corporation reported the following amount in the shareholders’ equity section of its December 31, 2023, balance sheet:
10%
Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) 100,000
Share premium 190,000
Retained earnings 1,200,000
The following transactions occurred during 2024:
February 1 – Purchase 4,000 shares of its own outstanding ordinary shares for P80,000.
March 1 – Ordinary shares were split 2 for 1.
April 30 – Reissued 2,000 treasury ordinary shares for cash at P15 per share.
June 30 – Issued 10,000 shares of preference shares at P15 per share.
August 1 – Purchased 3,000 preference shares from June 30 issuance at P12 per share.
September 1 – Declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share dividend on September 30.
December 1 – Declared the annual dividend on preference shares and the P2.00 per share dividend on ordinary shares. These dividends are payable in 2025.
December 31 – Registered a net income for 2024 at P800.000
Required: Determine the adjusted balances of the following accounts:
.1.) Ordinary Shares - a.) 217,000 b.) 108,500 c.) 187,000 d.) 93,500
2.) Share premium - a.) 250,000 b.) 261,900 c.) 240,000 d.) 251,900
3.) Retained Earnings unappropriated - a.) 1,761,800 b.) 1,857,800 c. 1,854,800 d.1,758,800
4.) total
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 7 images
