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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 Share Premium- P 325,000 Preference Subscribed Ordinary Shares Ordinary Shares Dividend Distributable 100,000 Share Premium-Treasury 17,500 62,500 Donated Capital 70,000 Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary Retained Earnings: 117,500 2,075,000 Unappropriated Appropriated for Plant Expansion 1,870,000 7% Preference Shares 250,000 125,000 7% Preference Shares- Subscribed 25,000 Additional Information: 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 Share Premium- P 325,000 Preference Subscribed Ordinary Shares Ordinary Shares Dividend Distributable 100,000 Share Premium-Treasury 17,500 62,500 Donated Capital 70,000 Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary Retained Earnings: 117,500 2,075,000 Unappropriated Appropriated for Plant Expansion 1,870,000 7% Preference Shares 250,000 125,000 7% Preference Shares- Subscribed 25,000 Additional Information: 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.

FINANCIAL ACCOUNTING
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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Complete solution of required 1 and 2 please. Thanks.
Problem #30 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 Share Premium- P 325,000 Preference Subscribed Ordinary Shares Ordinary Shares Dividend Distributable 100,000 Share Premium-Treasury 17,500 62,500 Donated Capital 70,000 Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary Retained Earnings: 117,500 2,075,000 Unappropriated Appropriated for Plant Expansion 1,870,000 7% Preference Shares 250,000 125,000 7% Preference Shares- Subscribed 25,000 Additional Information: 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.
Transcribed Image Text:Problem #30 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 Share Premium- P 325,000 Preference Subscribed Ordinary Shares Ordinary Shares Dividend Distributable 100,000 Share Premium-Treasury 17,500 62,500 Donated Capital 70,000 Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary Retained Earnings: 117,500 2,075,000 Unappropriated Appropriated for Plant Expansion 1,870,000 7% Preference Shares 250,000 125,000 7% Preference Shares- Subscribed 25,000 Additional Information: 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.
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