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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18P
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff73bc929-18b0-40d1-92ef-1c54f5f4dd02%2Ffb0eb8f0-9e06-4a5e-89df-d68ff18f5767%2Fncibigc_processed.png&w=3840&q=75)
Transcribed Image Text: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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff73bc929-18b0-40d1-92ef-1c54f5f4dd02%2Ffb0eb8f0-9e06-4a5e-89df-d68ff18f5767%2F95kra49_processed.png&w=3840&q=75)
Transcribed Image Text: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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