Murphy Company reported the following shareholders' equity on January 1, 2020: Preference share capital, 100,000shares, P10 par - P1,000,000 Ordinary share capital, 500,000shares, P10 par - P5,000,000 Share premium - Preference - P50,000 Share premium - Ordinary - P 200,000 Retained earnings - P100,000 During the current year, the following transactions were completed: Retirement of 5,000 preference shares at P11 per share. Purchase of 5,000 ordinary shares of treasury at P12 per share. Share split, ordinary share, 2-for-1. Reissue of 2,000 shares of treasury at P8 per share. Net income for the year, P300,000. What is the total shareholders’ equity on December 31, 2020?
Murphy Company reported the following shareholders' equity on January 1, 2020:
Ordinary share capital, 500,000shares, P10 par - P5,000,000
Share premium - Preference - P50,000
Share premium - Ordinary - P 200,000
During the current year, the following transactions were completed:
Retirement of 5,000 preference shares at P11 per share.
Purchase of 5,000 ordinary shares of treasury at P12 per share.
Share split, ordinary share, 2-for-1.
Reissue of 2,000 shares of treasury at P8 per share.
Net income for the year, P300,000.
What is the total shareholders’ equity on December 31, 2020?
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