Preparation of the Shareholders' Equity Section of a Statement of Financial Position The accounts listed below were taken from the general ledger of the Liggayu Corporation on June 30, 2019. Each account has a normal balance. Ordinary Shares P1,300,000 Subscribed Ordinary Shares Ordinary Shares Dividend Distributable Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary 7% Preference Shares 7% Preference Shares- Subscribed Additional Information: 100,000 70,000 117,500 2,075,000 250,000 25,000 Share Premium- Preference Share Premium-Treasury Donated Capital Retained Earnings: Unappropriated Appropriated for Plant Expansion. P 325,000 17,500 62,500 1,870,000 125,000 a. Preference share has a par value of P50 per share. Liggayu was authorized to issue 10,000 shares. The preference share is cumulative and participating. b. Ordinary share has a par value of P5 per share. Liggayu was authorized to issue 500,000 shares. Required: 1. Prepare the shareholders' equity section of Liggayu Corporation's June 30, 2019 statement of financial position. 2. Use the par values of preference and ordinary shares to calculate the number of shares issued and outstanding.
Preparation of the Shareholders' Equity Section of a Statement of Financial Position The accounts listed below were taken from the general ledger of the Liggayu Corporation on June 30, 2019. Each account has a normal balance. Ordinary Shares P1,300,000 Subscribed Ordinary Shares Ordinary Shares Dividend Distributable Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary 7% Preference Shares 7% Preference Shares- Subscribed Additional Information: 100,000 70,000 117,500 2,075,000 250,000 25,000 Share Premium- Preference Share Premium-Treasury Donated Capital Retained Earnings: Unappropriated Appropriated for Plant Expansion. P 325,000 17,500 62,500 1,870,000 125,000 a. Preference share has a par value of P50 per share. Liggayu was authorized to issue 10,000 shares. The preference share is cumulative and participating. b. Ordinary share has a par value of P5 per share. Liggayu was authorized to issue 500,000 shares. Required: 1. Prepare the shareholders' equity section of Liggayu Corporation's June 30, 2019 statement of financial position. 2. Use the par values of preference and ordinary shares to calculate the number of shares issued and outstanding.
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16P: Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018,...
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