On December 31, 2019, an entity reported the following equity items: 8% cumulative preference shares (150,000 issued, P20 par) Ordinary share capital (2,000,000 issued, P5 par) Share Premium- Preference + Share Premium -Ordinary Retained Earnings The following transactions affected equity during 2020: Jan 1. Apr 1 Jun 1 Jul 1 Oct 1 P3,000,000 10,000,000 200,000 27,000,000 4,500,000 30,000 preference shares issued at P22 per share 50,000 ordinary shares issued at P20 per share 2-for-1 share split on the ordinary share 30,000 ordinary treasury shares were reacquired at P10 per share 10,000 treasury shares were re-issued at P11 per share

On December 31, 2019, an entity reported the following equity items: 8% cumulative preference shares (150,000 issued, P20 par) Ordinary share capital (2,000,000 issued, P5 par) Share Premium- Preference + Share Premium -Ordinary Retained Earnings The following transactions affected equity during 2020: Jan 1. Apr 1 Jun 1 Jul 1 Oct 1 P3,000,000 10,000,000 200,000 27,000,000 4,500,000 30,000 preference shares issued at P22 per share 50,000 ordinary shares issued at P20 per share 2-for-1 share split on the ordinary share 30,000 ordinary treasury shares were reacquired at P10 per share 10,000 treasury shares were re-issued at P11 per share

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On December 31, 2019, an entity reported the following equity items:
8% cumulative preference shares (150,000 issued, P20 par)
Ordinary share capital (2,000,000 issued, P5 par)
Share Premium- Preference
+ Share Premium -Ordinary
Retained Earnings
The following transactions affected equity during 2020:
Jan 1.
Apr 1
Jun 1
Jul 1
Oct 1
Dec 31
was paid during 2018
P3,000,000
10,000,000
200,000
27,000,000
4,500,000
30,000 preference shares issued at P22 per share
50,000 ordinary shares issued at P20 per share
2-for-1 share split on the ordinary share
30,000 ordinary treasury shares were reacquired at P10 per share
10,000 treasury shares were re-issued at P11 per share
Net-income for the year is P9,000,000. The latest preference dividend

26. What amount should be reported as total shareholder's equity on December 31,
2020?
a. P55,170,000
b. P44,700,000
c. P54,882,000
d. P55,375,000
27. What amount should be reported as basic earnings per share (EPS) for 2020? a. 2.20
b. 2.22
c. 2.14
d. 2.07
28. What is the book value per preferred share on December 31, 2020?
a. 20.00
b. 22.93
c. 23.20
d. 21.60

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