shareholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:6. The shareholders' equity of Stormy Co. is as follows:
Shareholders' equity, P100 par
Share premium
Retained earnings
Total shareholders' equity
2,000,000
400,000
600,000
3,000,000
Stormy Co. reduces the par value per share to P80.
Requirement: Prepare the shareholders' equity of Stormy Co. after
the recapitalization.
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