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The capital structure of Red Ribbon Corporation on December 31, 2020 follows: Preference 12% Share Capital, P200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary Share Capital, P50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium-Preference 1,800,000 Share Premium-Ordinary 1,500,000 Retained Earnings 2,200,000 During 2021, the following selected transactions occurred: a. Purchased and retired 4,000 preference shares at P280 per share. b. Purchased 8,000 shares of its own ordinary share at P75 per share when each share is selling in the market at P78 each. c. A 2-for-1 share split on the ordinary share was approved by the shareholders, thereby reducing the par value to P25. d. Reissued 6,000 treasury shares at P45 each. e. Shareholders donated 4,000 ordinary shares when the market price was P46 per share. f. Two thousand of the donated shares were issued for P48 per share. g. The profit for 2021 was P2,000,000. No dividends were declared.

The capital structure of Red Ribbon Corporation on December 31, 2020 follows: Preference 12% Share Capital, P200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary Share Capital, P50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium-Preference 1,800,000 Share Premium-Ordinary 1,500,000 Retained Earnings 2,200,000 During 2021, the following selected transactions occurred: a. Purchased and retired 4,000 preference shares at P280 per share. b. Purchased 8,000 shares of its own ordinary share at P75 per share when each share is selling in the market at P78 each. c. A 2-for-1 share split on the ordinary share was approved by the shareholders, thereby reducing the par value to P25. d. Reissued 6,000 treasury shares at P45 each. e. Shareholders donated 4,000 ordinary shares when the market price was P46 per share. f. Two thousand of the donated shares were issued for P48 per share. g. The profit for 2021 was P2,000,000. No dividends were declared.

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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How much is the balance of Ordinary Share Capital at year end?
The capital structure of Red Ribbon Corporation on December 31, 2020 follows: Preference 12% Share Capital, P200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary Share Capital, P50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium-Preference 1,800,000 Share Premium-Ordinary 1,500,000 Retained Earnings 2,200,000 During 2021, the following selected transactions occurred: a. Purchased and retired 4,000 preference shares at P280 per share. b. Purchased 8,000 shares of its own ordinary share at P75 per share when each share is selling in the market at P78 each. c. A2-for-1 share split on the ordinary share was approved by the shareholders, thereby reducing the par value to P25. d. Reissued 6,000 treasury shares at P45 each. e. Shareholders donated 4,000 ordinary shares when the market price was P46 per share. f. Two thousand of the donated shares were issued for P48 per share. g. The profit for 2021 was P2,000,000. No dividends were declared.
Transcribed Image Text:The capital structure of Red Ribbon Corporation on December 31, 2020 follows: Preference 12% Share Capital, P200 par, 30,000 shares issued and outstanding P 6,000,000 Ordinary Share Capital, P50 par, 100,000 shares issued and outstanding 5,000,000 Share Premium-Preference 1,800,000 Share Premium-Ordinary 1,500,000 Retained Earnings 2,200,000 During 2021, the following selected transactions occurred: a. Purchased and retired 4,000 preference shares at P280 per share. b. Purchased 8,000 shares of its own ordinary share at P75 per share when each share is selling in the market at P78 each. c. A2-for-1 share split on the ordinary share was approved by the shareholders, thereby reducing the par value to P25. d. Reissued 6,000 treasury shares at P45 each. e. Shareholders donated 4,000 ordinary shares when the market price was P46 per share. f. Two thousand of the donated shares were issued for P48 per share. g. The profit for 2021 was P2,000,000. No dividends were declared.
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