Manny Company had the following beginning balances:: Preference Share Capital (P10 par) - 200,000 Ordinary Share Capital (P5 par) - 50,000 Share Premium - 100,000 Retained Earnings - 600,000 The following transactions occurred during the year: Purchased 2,000 shares of its own outstanding ordinary shares for P20 per share. Reissued 700 treasury shares for equipment valued at P25,000. Issued 5,000 preference shares at P15 per share. Declared and issued a 10% stock dividend on the outstanding ordinary shares when its fair value is P12 each. Declared and paid the annual P1 per share dividend on preference shares and P0.50 per share dividends on ordinary shares. Appropriated retained earnings for plant expansion, P350,000. Appropriated retained earnings for treasury shares. How much is the ending balance of the Preference Share Capital account? How much is the ending balance of the Ordinary Share Capital account?
Manny Company had the following beginning balances:: Preference Share Capital (P10 par) - 200,000 Ordinary Share Capital (P5 par) - 50,000 Share Premium - 100,000 Retained Earnings - 600,000 The following transactions occurred during the year: Purchased 2,000 shares of its own outstanding ordinary shares for P20 per share. Reissued 700 treasury shares for equipment valued at P25,000. Issued 5,000 preference shares at P15 per share. Declared and issued a 10% stock dividend on the outstanding ordinary shares when its fair value is P12 each. Declared and paid the annual P1 per share dividend on preference shares and P0.50 per share dividends on ordinary shares. Appropriated retained earnings for plant expansion, P350,000. Appropriated retained earnings for treasury shares. How much is the ending balance of the Preference Share Capital account? How much is the ending balance of the Ordinary Share Capital account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manny Company had the following beginning balances::
Preference Share Capital (P10 par) - 200,000- Ordinary Share Capital (P5 par) - 50,000
- Share Premium - 100,000
Retained Earnings - 600,000
- Purchased 2,000 shares of its own outstanding ordinary shares for P20 per share.
- Reissued 700 treasury shares for equipment valued at P25,000.
- Issued 5,000 preference shares at P15 per share.
- Declared and issued a 10% stock dividend on the outstanding ordinary shares when its fair value is P12 each.
- Declared and paid the annual P1 per share dividend on preference shares and P0.50 per share dividends on ordinary shares.
- Appropriated retained earnings for plant expansion, P350,000.
- Appropriated retained earnings for treasury shares.
How much is the ending balance of the Preference Share Capital account?
How much is the ending balance of the Ordinary Share Capital account?
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