Homework Help is Here – Start Your Trial Now!
Business
Accounting
How much is the total shareholder's equity at December 31,2019? 2. How many ordinary shares are outstanding at December 31,2019? 3. How much is the accumulated profits balance reported at December 31,2019?

How much is the total shareholder's equity at December 31,2019? 2. How many ordinary shares are outstanding at December 31,2019? 3. How much is the accumulated profits balance reported at December 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
See similar textbooks
icon
Related questions
Question

1. How much is the total shareholder's equity at December 31,2019?

2. How many ordinary shares are outstanding at December 31,2019?

3. How much is the accumulated profits balance reported at December 31,2019?

ABC Company is a publicly listed company whose shares are traded in the over-the-counter market. The shareholder's equity accounts at December 31, 2018 had the following balances: Preference share capital, P 100 par ,12% cumulative; 50,000 shares authorized; 20,000 shares issued and outstanding Ordinary share capital, P 10 par; 150,000 shares authorized; 100, 000 shares issued and outstanding Share premium Accumulated profits Total Shareholder's equity P 2,000,000 1,000,000 8,000,000 2,586,000 P 13,586,000 Transactions during 2019 and other information relating to shareholder's equity accounts were as follows: January 1: Issued 30,000 ordinary shares to DEF Company in exchange for a piece of land. On this date, the ordinary share had a market price of P 20 per share. The land had a carrying value on DEF's books of P 420,000 and a fair value of P 400,000. • February 1: Purchased 5,000 of its own ordinary shares to be held as treasury for P 24 per share. • March 10: Declared property dividend (equity investments at fair value through profit or loss) to ordinary shareholders. The investments had a carrying value of P 600,000 as of December 31,2018 and fair value of P 720,000 on March 10, 2019 and P 736,000 on June 1,2019 which is the distribution date. October 1: Reissued 2,000 treasury shares at P 26. • Declared cash dividend of P 5 per share to ordinary shareholders of record of November 15, 2019 and payable on November 25, 2019. • Declared the required annual cash dividend on preference share for 2019. The dividend was paid on January 5, 2020. • Profit for the year 2019 is P 8,380,000.
Transcribed Image Text:ABC Company is a publicly listed company whose shares are traded in the over-the-counter market. The shareholder's equity accounts at December 31, 2018 had the following balances: Preference share capital, P 100 par ,12% cumulative; 50,000 shares authorized; 20,000 shares issued and outstanding Ordinary share capital, P 10 par; 150,000 shares authorized; 100, 000 shares issued and outstanding Share premium Accumulated profits Total Shareholder's equity P 2,000,000 1,000,000 8,000,000 2,586,000 P 13,586,000 Transactions during 2019 and other information relating to shareholder's equity accounts were as follows: January 1: Issued 30,000 ordinary shares to DEF Company in exchange for a piece of land. On this date, the ordinary share had a market price of P 20 per share. The land had a carrying value on DEF's books of P 420,000 and a fair value of P 400,000. • February 1: Purchased 5,000 of its own ordinary shares to be held as treasury for P 24 per share. • March 10: Declared property dividend (equity investments at fair value through profit or loss) to ordinary shareholders. The investments had a carrying value of P 600,000 as of December 31,2018 and fair value of P 720,000 on March 10, 2019 and P 736,000 on June 1,2019 which is the distribution date. October 1: Reissued 2,000 treasury shares at P 26. • Declared cash dividend of P 5 per share to ordinary shareholders of record of November 15, 2019 and payable on November 25, 2019. • Declared the required annual cash dividend on preference share for 2019. The dividend was paid on January 5, 2020. • Profit for the year 2019 is P 8,380,000.
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS