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Problem 5 1 2 3 4 5 6 7 10 The shareholders' equity section of BENSON CORPORATION's statement of financial position as of December 31, 2021, is as follows Ordinary share capital, P5 par value; authorized, 1,000,000 shares; issued 400,000 shares Share premium Retained earnings The following events occurred during 2022: Jan. 5 Jan. 16 Feb. 10 March 1 April 1 July 1 Aug. 1 10,000 shares of authorized and unissued ordinary shares were sold for P8 per share. 2,000,000 850,000 3,000,000 5,850,000 Declared a cash dividend of 20 centavos per share, payable February 15 to shareholders of record on February 5. 20,000 shares of authorized and unissued ordinary shares were sold for P12 per share. A 30% stock dividend was declared and issued. Market value per share is currently P15. A two-for-one split was carried out. The par value of the shares was to be reduced to P2.50 per share. Market value on March 31 was P18 per share. A 15% stock dividend was declared and issued. Market value is currently P10 per share. A cash dividend of 20 centavos per share was declared, payable September 1 to shareholders of record on August 21. Based on the preceding information, determine the balances of the following at December 31, 2022.

Problem 5 1 2 3 4 5 6 7 10 The shareholders' equity section of BENSON CORPORATION's statement of financial position as of December 31, 2021, is as follows Ordinary share capital, P5 par value; authorized, 1,000,000 shares; issued 400,000 shares Share premium Retained earnings The following events occurred during 2022: Jan. 5 Jan. 16 Feb. 10 March 1 April 1 July 1 Aug. 1 10,000 shares of authorized and unissued ordinary shares were sold for P8 per share. 2,000,000 850,000 3,000,000 5,850,000 Declared a cash dividend of 20 centavos per share, payable February 15 to shareholders of record on February 5. 20,000 shares of authorized and unissued ordinary shares were sold for P12 per share. A 30% stock dividend was declared and issued. Market value per share is currently P15. A two-for-one split was carried out. The par value of the shares was to be reduced to P2.50 per share. Market value on March 31 was P18 per share. A 15% stock dividend was declared and issued. Market value is currently P10 per share. A cash dividend of 20 centavos per share was declared, payable September 1 to shareholders of record on August 21. Based on the preceding information, determine the balances of the following at December 31, 2022.

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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PROBLEM 5 - AUDITING PROBLEMS
Compute fot the following:
3. Share premium
4. Retained earnings

Problem 5 The shareholders' equity section of BENSON CORPORATION's statement of financial position as of December 31, 2021, is as follows: 1 2 3 4 5 6 7 Ordinary share capital, P5 par value; authorized, 1,000,000 shares; issued 400,000 shares Share premium Retained earnings The following events occurred during 2022: Jan. 5 Jan. 16 Feb. 10 March 1 April 1 July 1 Aug. 1 2,000,000 850,000 3,000,000 5,850,000 10,000 shares of authorized and unissued ordinary shares were sold for P8 per share. Declared a cash dividend of 20 centavos per share, payable February 15 to shareholders of record on February 5. 20,000 shares of authorized and unissued ordinary shares were sold for P12 per share. A 30% stock dividend was declared and issued. Market value per share is currently P15. A two-for-one split was carried out. The par value of the shares was to be reduced to P2.50 per share. Market value on March 31 was P18 per share. A 15% stock dividend was declared and issued. Market value is currently P10 per share. Based on the preceding information, determine the balances of the following at December 31, 2022. A cash dividend of 20 centavos per share was declared, payable September 1 to shareholders of record on August 21.
Transcribed Image Text:Problem 5 The shareholders' equity section of BENSON CORPORATION's statement of financial position as of December 31, 2021, is as follows: 1 2 3 4 5 6 7 Ordinary share capital, P5 par value; authorized, 1,000,000 shares; issued 400,000 shares Share premium Retained earnings The following events occurred during 2022: Jan. 5 Jan. 16 Feb. 10 March 1 April 1 July 1 Aug. 1 2,000,000 850,000 3,000,000 5,850,000 10,000 shares of authorized and unissued ordinary shares were sold for P8 per share. Declared a cash dividend of 20 centavos per share, payable February 15 to shareholders of record on February 5. 20,000 shares of authorized and unissued ordinary shares were sold for P12 per share. A 30% stock dividend was declared and issued. Market value per share is currently P15. A two-for-one split was carried out. The par value of the shares was to be reduced to P2.50 per share. Market value on March 31 was P18 per share. A 15% stock dividend was declared and issued. Market value is currently P10 per share. Based on the preceding information, determine the balances of the following at December 31, 2022. A cash dividend of 20 centavos per share was declared, payable September 1 to shareholders of record on August 21.
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