On January 1, 2020, LeiLanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July The net income for 2020 was P3,000,000.
On January 1, 2020, LeiLanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July The net income for 2020 was P3,000,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, LeiLanie Company reported the following shareholders' equity:
Share capital
1,500,000
Share premium
3,000,000
Retained earnings 5,000,000
The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding.
On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury.
On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July 1.
The net income for 2020 was P3,000,000.
How much is the total shareholders' equity?
Select the correct response:
O 11,000,000
10,500,000
9,500,000
O 10,000,000
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