Prepare the Shareholders' Equity section of the Statement of Financial Position of New Era Corporation as of December 31,20A. 10% Preference Shares at P50 par value, authorized to issue 10,000 shares and issued 6,000 shares Ordinary Shares at P75 par value, authorized to issue 5,000 shares and issued 4,000 shares of which 100 shares are in the treasury P300,000 300,000 Share Premium: Preference Ordinary Subscribed Preference Share Subscription Receivable – Preference Subscribed Ordinary Share Subscription Receivable - Ordinary Accumulated Profits and Losses 4,000 8,000 100,000 60,000 37,500 10,000 520,000 Revaluation Increment on Property Treasury Shares at Cost 30,000 8,000

Prepare the Shareholders' Equity section of the Statement of Financial Position of New Era Corporation as of December 31,20A. 10% Preference Shares at P50 par value, authorized to issue 10,000 shares and issued 6,000 shares Ordinary Shares at P75 par value, authorized to issue 5,000 shares and issued 4,000 shares of which 100 shares are in the treasury P300,000 300,000 Share Premium: Preference Ordinary Subscribed Preference Share Subscription Receivable – Preference Subscribed Ordinary Share Subscription Receivable - Ordinary Accumulated Profits and Losses 4,000 8,000 100,000 60,000 37,500 10,000 520,000 Revaluation Increment on Property Treasury Shares at Cost 30,000 8,000

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Problem 2.
Prepare the Shareholders' Equity section of the Statement of Financial Position of New Era
Corporation as of December 31,20A.
10% Preference Shares at P50 par value, authorized
to issue 10,000 shares and issued 6,000 shares
Ordinary Shares at P75 par value, authorized to issue
5,000 shares and issued 4,000 shares of which
100 shares are in the treasury
P300,000
300,000
Share Premium:
Preference
Ordinary
Subscribed Preference Share
Subscription Receivable – Preference
Subscribed Ordinary Share
Subscription Receivable - Ordinary
Accumulated Profits and Losses
4,000
8,000
100,000
60,000
37,500
10,000
520,000
30,000
8,000
Revaluation Increment on Property
Treasury Shares at Cost

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