The cash dividends declaration on December 15 includes a debit to retained earnings of
On May 2020 GSW was organized with 3,000,000 authorized shares of P10 par value ordinary shares, and 300,000 of its ordinary shares were issued for P3,300,000. Net income through December 31, 2020 was P125,000.
On July 23, 2021, when the shares were selling at P13 per share, GSW issued 500,000 of its ordinary shares in exchange of a real estate properties which were fairly valued at P6,250,000. A 5% share dividend was declared on October 2, 2021, to shareholders of record on October 23, 2021. The market value of the ordinary shares was P11 per share on the declaration date. GSW net income for the year ended December 31, 2021 was P350,000.
During 2022, GSW had the following transactions:
- In February, GSW reacquired 15,000 of its treasury shares for P12 per share.
- In June, GSW sold 15,000 of its treasury shares for P12 per share.
- In September, each shareholder was issued (for each share held) one right to purchase two additional ordinary shares for P13 per share. The rights shall expire on December 31, 2022.
- In October, 250,000 share rights issues were exercised when the market value of the ordinary shares was P14 per share.
- In November, 400,000 share rights issues were exercised when the market value of the ordinary shares was P15 per share.
- On December 15, GSW declared its first cash dividends to shareholders of P0.30 per share, payable on January 10, 2023, to shareholders as of record on December 31, 2022.
- On December 31, GSW retired 10,000 of its treasury shares and had them reverted on an unissued basis. The market value of the ordinary shares was P16 on this date.
- Net income for 2022 was P800,000.
Question 1: The cash dividends declaration on December 15 includes a debit to
Group of answer choices
637,500
351,000
639,000
349,500
Question 2: What is the adjusted share premium account?
Group of answer choices
3,585,000
5,505,000
3,595,000
5,545,000
Question 3: What is the adjusted retained earnings balance?
Group of answer choices
485,500
197,500
196,000
484,000
Question 4: The total shareholders’ equity as of December 31, 2022 is?
Group of answer choices
27,042,500
14,467,500
14,422,500
26,997,500
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