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How much is the shareholder's equity at 12/31/2019?

How much is the shareholder's equity at 12/31/2019?

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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How much is the shareholder's equity at 12/31/2019?

The shareholder's equity of ABC Company at December 31,2018 is presented below: P 4,000,000 12% Preference share capital, P 200 par, 20,000 shares issued and outstanding Ordinary share capital, P 30 par, 300,000 shares issued and outstanding Share premium – Preference Additional paid in capital in excess of stated value - Ordinary Retained earnings 9,000,000 750,000 1,000,000 3,000,000 The following selected transactions relating to shareholder's equity were noted in 2019: a.) Purchased and retired 2,000 preference shares at P 230 each. b.) Purchased 30,000 of its own ordinary shares at P 35 per share. c.) Reissued 5,000 treasury shares at P 40 each. d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share. e.) One half of the donated shares were issued for P 39 each. f.) Profit for 2019 was P 1,850,000. g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 per ordinary share dividend.
Transcribed Image Text:The shareholder's equity of ABC Company at December 31,2018 is presented below: P 4,000,000 12% Preference share capital, P 200 par, 20,000 shares issued and outstanding Ordinary share capital, P 30 par, 300,000 shares issued and outstanding Share premium – Preference Additional paid in capital in excess of stated value - Ordinary Retained earnings 9,000,000 750,000 1,000,000 3,000,000 The following selected transactions relating to shareholder's equity were noted in 2019: a.) Purchased and retired 2,000 preference shares at P 230 each. b.) Purchased 30,000 of its own ordinary shares at P 35 per share. c.) Reissued 5,000 treasury shares at P 40 each. d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share. e.) One half of the donated shares were issued for P 39 each. f.) Profit for 2019 was P 1,850,000. g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 per ordinary share dividend.
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