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R. Carpio Products, Inc. was formed at the beginning of the year. Ordinary share has a P25 par value. The following entries affected the shareholders' equity during its first year's operations: a. Cash 150,000 Ordinary Shares Share Premium-Ordinary 125,000 25,000 Organization Expense Ordinary Shares 75,000 62,500 12.500 Share Premium.Ordinary

R. Carpio Products, Inc. was formed at the beginning of the year. Ordinary share has a P25 par value. The following entries affected the shareholders' equity during its first year's operations: a. Cash 150,000 Ordinary Shares Share Premium-Ordinary 125,000 25,000 Organization Expense Ordinary Shares 75,000 62,500 12.500 Share Premium.Ordinary

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 #14 Shareholders' Equity Transactions R. Carpio Products, Inc. was formed at the beginning of the year. Ordinary share has a P25 par value. The following entries affected the shareholders' equity during its first year's operations: a. Cash 150,000 Ordinary Shares Share Premium-Ordinary 125,000 25,000 b. Organization Expense Ordinary Shares Share Premium-Ordinary 75,000 62,500 12,500 . Cash Office Equipment Building Accounts Payable 29,000 10,750 30,000 29,750 25,000 Ordinary Shares Share Premium-Ordinary 15,000 d. Cash 60,000 Ordinary Shares Share Premium-Ordinary 37,500 22,500 e. Cash Dividends 7,500 Cash Dividends Payable 7,500 f. Cash Dividends Payable 7,500 Cash 7,500 E. Income Summary Retained Earnings 30,000 30,000 h. Retained Earnings Cash Dividends 7,500 7,500 Required: Provide explanations for the journal entries and answer the following questions: 1. What is the profit for the year? 2. How many ordinary shares are outstanding? 3. What is the legal capital? 4. What is the total share capital? 5. What is the retained earnings balance at the end of the year? 6. What is the total shareholders' equity? 7. What is the book value per share of the ordinary shares at the end of the year?
Transcribed Image Text:Problem #14 Shareholders' Equity Transactions R. Carpio Products, Inc. was formed at the beginning of the year. Ordinary share has a P25 par value. The following entries affected the shareholders' equity during its first year's operations: a. Cash 150,000 Ordinary Shares Share Premium-Ordinary 125,000 25,000 b. Organization Expense Ordinary Shares Share Premium-Ordinary 75,000 62,500 12,500 . Cash Office Equipment Building Accounts Payable 29,000 10,750 30,000 29,750 25,000 Ordinary Shares Share Premium-Ordinary 15,000 d. Cash 60,000 Ordinary Shares Share Premium-Ordinary 37,500 22,500 e. Cash Dividends 7,500 Cash Dividends Payable 7,500 f. Cash Dividends Payable 7,500 Cash 7,500 E. Income Summary Retained Earnings 30,000 30,000 h. Retained Earnings Cash Dividends 7,500 7,500 Required: Provide explanations for the journal entries and answer the following questions: 1. What is the profit for the year? 2. How many ordinary shares are outstanding? 3. What is the legal capital? 4. What is the total share capital? 5. What is the retained earnings balance at the end of the year? 6. What is the total shareholders' equity? 7. What is the book value per share of the ordinary shares at the end of the year?
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