The following data were compiled prior to preparing statement of financial position of the Conviction Corporation: Authorized share capital, P100 par value P 4,000,000 Unissued share capital 800,000 Subscribed share capital 480,000 Subscriptions receivable `120,000 Premium on share capital 320,000 Premium on bonds payable 240,000 Gain on sale of treasury shares 80,000 Donated capital 800,000 Share warrants outstanding 200,000 Reserve for bond sinking fund 400,000 Reserve for depreciation 600,000 Treasury shares, at cost 144,000 Retained earnings, unappropriated 720,000 Cash dividends payable 160,000 Revaluation increment on property 800,000 Net unrealized loss on financial assets at fair value through OCI 96,000 1. What is the total legal capital? 2. What is the total shareholders’ equity?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PROBLEM 1
The following data were compiled prior to preparing statement of financial position of the Conviction Corporation:
Authorized share capital, P100 par value P 4,000,000
Unissued share capital 800,000
Subscribed share capital 480,000
Subscriptions receivable `120,000
Premium on share capital 320,000
Premium on bonds payable 240,000
Gain on sale of treasury shares 80,000
Donated capital 800,000
Share warrants outstanding 200,000
Reserve for bond sinking fund 400,000
Reserve for depreciation 600,000
Treasury shares, at cost 144,000
Retained earnings, unappropriated 720,000
Cash dividends payable 160,000
Revaluation increment on property 800,000
Net unrealized loss on financial assets
at fair value through OCI 96,000
 
1. What is the total legal capital?
2. What is the total shareholders’ equity?
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