1. How much is the TOTAL SHAREHOLDERS' EQUITY?2. How much is the TOTAL RESERVES? On December 31, 2021, the statement of financial position of FRUITS Company showed thefollowing shareholders' equity accounts:• Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury7,500 shares - P 4,250,00012% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, intreasury 4,000 shares - P 1,500,000Share premium in excess of par - P 862,500Reserve for Treasury shares - P 725,000Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000Retained earnings, unrestricted -P 2,168,000Net income for the year - P 762,000Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

Shareholders equity comprises of share capital and reserves and surplus less treasury stock.

Answered: On December 31, 2021, the statement of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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1. How much is the TOTAL SHAREHOLDERS' EQUITY?

2. How much is the TOTAL RESERVES?

On December 31, 2021, the statement of financial position of FRUITS Company showed the
following shareholders' equity accounts:
• Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury
7,500 shares - P 4,250,000
12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in
treasury 4,000 shares - P 1,500,000
Share premium in excess of par - P 862,500
Reserve for Treasury shares - P 725,000
Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000
Retained earnings, unrestricted -P 2,168,000
Net income for the year - P 762,000
Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included

Definition Definition Capital reserves held by banks or financial institutions over and above the reserves that are required to be maintained by the regulator toward its liabilities and for internal controls. For commercial banks, excess reserve is the amount over the standard reserve as decided by the central bank. These excess reserve funds are available in the form of cash and cash equivalents.

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