Problem 2: GRAPES Company provided the following data for the year: Sold 25,000 preference shares, 12%, 50 par, at #75 Sold 80,000 ordinary shares of P10, par at P45. Purchased and retired 10,000 preference shares at 60 Purchased 5,000 shares at P40 to be held as treasury Sold 3,000 treasury ordinary shares at 50 Share split up for ordinary shares, 2 for 1 Shareholders donated 10,000 ordinary shares. One half of these were sold for $20 Retired 500 treasury ordinary shares Net income for the year was 2,500,000 Appropriated retained earnings equal to the balance of treasury shares. Requirements: C. Prepare all necessary entries for the year. D. Compute or provide the answers for the following: 8. What is the balance of preference share capital at year-end? 9. What is the balance of ordinary share capital at year-end? 10. What is the total balance of treasury shares at year-end? 11. What is the total outstanding ordinary shares at year-end? 12. What is the total issued shares at year-end (add preference and ordinary) 13. How much is the balance of the shareholders' equity at year-end? 14. How much is the total legal capital? 15. How much the total contributed capital?
Problem 2: GRAPES Company provided the following data for the year: Sold 25,000 preference shares, 12%, 50 par, at #75 Sold 80,000 ordinary shares of P10, par at P45. Purchased and retired 10,000 preference shares at 60 Purchased 5,000 shares at P40 to be held as treasury Sold 3,000 treasury ordinary shares at 50 Share split up for ordinary shares, 2 for 1 Shareholders donated 10,000 ordinary shares. One half of these were sold for $20 Retired 500 treasury ordinary shares Net income for the year was 2,500,000 Appropriated retained earnings equal to the balance of treasury shares. Requirements: C. Prepare all necessary entries for the year. D. Compute or provide the answers for the following: 8. What is the balance of preference share capital at year-end? 9. What is the balance of ordinary share capital at year-end? 10. What is the total balance of treasury shares at year-end? 11. What is the total outstanding ordinary shares at year-end? 12. What is the total issued shares at year-end (add preference and ordinary) 13. How much is the balance of the shareholders' equity at year-end? 14. How much is the total legal capital? 15. How much the total contributed capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2:
GRAPES Company provided the following data for the year:
Sold 25,000 preference shares, 12%, P50 par, at P75
Sold 80,000 ordinary shares of P10, par at P45.
Purchased and retired 10,000 preference shares at P60
Purchased 5,000 shares at P40 to be held as treasury
Sold 3,000 treasury ordinary shares at P50
Share split up for ordinary shares, 2 for 1
Shareholders donated 10,000 ordinary shares. One half of these were sold for P20
Retired 500 treasury ordinary shares
Net income for the year was P2,500,000
Appropriated retained earnings equal to the balance of treasury shares.
Requirements:
C. Prepare all necessary entries for the year.
D. Compute or provide the answers for the following:
8. What is the balance of preference share capital at year-end?
9. What is the balance of ordinary share capital at year-end?
10. What is the total balance of treasury shares at year-end?
11. What is the total outstanding ordinary shares at year-end?
12. What is the total issued shares at year-end (add preference and ordinary)
13. How much is the balance of the shareholders' equity at year-end?
14. How much is the total legal capital?
15. How much the total contributed capital?
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