Problem 6: The capital accounts of Sangonomiya Kokomi Company on December 31, 2020 were follows: Preference share, P20 par, 30,000 shares Share premium - preference Ordinary share, P80 par, 75,000 shares Share premium - ordinary Retained earnings During the year 2021, the following transactions took place in chronological order: 1,500 preference shares were retired at P25 per share. ● 3,000 treasury shares (ordinary) were purchased at P85 per share. A 2-for-1 share split was declared on the ordinary shares. 1,200 treasury shares (ordinary) were reissued at P50 per share. Profit for 2021 was P1,350,000. ● ● ● 600,000 240,000 6,000,000 900,000 540,000 10. What was the total shareholder's equity on December 31, 2021? a. P8,280,000
Problem 6: The capital accounts of Sangonomiya Kokomi Company on December 31, 2020 were follows: Preference share, P20 par, 30,000 shares Share premium - preference Ordinary share, P80 par, 75,000 shares Share premium - ordinary Retained earnings During the year 2021, the following transactions took place in chronological order: 1,500 preference shares were retired at P25 per share. ● 3,000 treasury shares (ordinary) were purchased at P85 per share. A 2-for-1 share split was declared on the ordinary shares. 1,200 treasury shares (ordinary) were reissued at P50 per share. Profit for 2021 was P1,350,000. ● ● ● 600,000 240,000 6,000,000 900,000 540,000 10. What was the total shareholder's equity on December 31, 2021? a. P8,280,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 6:
The capital accounts of Sangonomiya Kokomi Company on December 31, 2020 were as
follows:
Preference share, P20 par, 30,000 shares
Share premium - preference
Ordinary share, P80 par, 75,000 shares
Share premium - ordinary
Retained earnings
During the year 2021, the following transactions took place in chronological order:
1,500 preference shares were retired at P25 per share.
3,000 treasury shares (ordinary) were purchased at P85 per share.
A 2-for-1 share split was declared on the ordinary shares.
1,200 treasury shares (ordinary) were reissued at P50 per share.
Profit for 2021 was P1,350,000.
▪
600,000
240,000
6,000,000
900,000
540,000
10. What was the total shareholder's equity on December 31, 2021?
a. P8,280,000
b. P9,441,000
c. P9,397,500
d. P9,405,000
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