nas un Kunh rdinary Share Capital, P100 par value, authorized 8,000 etained Earnings P480, 294,0 be following transactions took place in 2021:
nas un Kunh rdinary Share Capital, P100 par value, authorized 8,000 etained Earnings P480, 294,0 be following transactions took place in 2021:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Compassionate Company has the following equity accounts at December 31, 2020:
Ordinary Share Capital, P100 par value, authorized 8,000
Retained Earnings
P480,000
294,000
The following transactions took place in 2021:
a.) 280 ordinary shares were purchased at P97 per share.
b.) A P20 per share dividend was declared.
c.) The dividend declared in (b) was paid.
d.) The treasury shares purchased in (a) were resold at P102 per share.
e.) 500 shares were purchased at P105 per shares.
f.) 350 of the shares purchased in (e) were resold at P96.
Required: Compute the balance after transactions a to f of following accounts:
a.) Treasury Shares
b.) Retained Earnings Unappropriated
Transcribed Image Text:2. Kind Company reported the following amounts in equity section of its December 31, 2020,
statement of financial position.
Preference Share Capital, 8%, P100 par
Ordinary Share Capital, P5 par
Share Premium
Retained Earnings
P200,000
100,000
125,000
450,000
During 2021, Kind Company took part in the following transactions concerning equity:
a.) Paid the annual 2020 dividend on preference shares and a P2 per share dividend on
ordinary shares. The dividends had been declared on December 31, 2020.
b.) Purchased 2,700 shares of its own outstanding ordinary shares for P40 per share.
c.) Reissued 700 treasury shares for land with carrying value of P30,000.
d.) Issued 500 preference shares at P105 per share.
e.) Declared a 10% share dividend on the outstanding ordinary shares when the shares
are selling for P45 per share.
f.) Issued the share dividend.
g.) Declared the annual 2021 dividend on preference shares and the P2 per share
dividend on ordinary shares. The dividends are payable in 2022.
h.) The net income for 2021 is P430,000.
Required: Compute the year-end balance of the following:
a.) Preference Share Capital
b.) Ordinary Share Capital
c.) Total Share Premium
d.) Unappropriated Retained Earnings
e.) Total Stockholders Equity
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