The following is a summary of all relevant transactions of LUNA INC. since it was organized in 2019. Preference Shares 10,000 shares (P100 par value) were authorizedand 4,000 shares were issued at P113 in 2019. Some of the preference shares were reacquired by LUNA and later reissued for P4,700 more than it cost the company. Ordinary Shares In 2019, 15,000 shares (P50 parvalue) were authorized and 7,000 shares were issued at P57. In 2020, 1,000 shares were issued as share dividend when the share was selling for P62. In the same year, 300 shares were bought at P66. These 300 shares are still in the company treasury. Additional information LUNA has earned a total of P600,000 in net income after income tax and paid out a total of P305,000 in cash dividend since incorporation. Required: Prepare in good form the shareholders’ equity section of the 2020 Statement of Financial Position of LUNA INC.
The following is a summary of all relevant transactions of LUNA INC. since it was organized in 2019.
10,000 shares (P100 par value) were authorizedand 4,000 shares were issued at P113 in 2019. Some of the preference shares were reacquired by LUNA and later reissued for P4,700 more than it cost the company.
Ordinary Shares
In 2019, 15,000 shares (P50 parvalue) were authorized and 7,000 shares were issued at P57. In 2020, 1,000 shares were issued as share dividend when the share was selling for P62. In the same year, 300 shares were bought at P66. These 300 shares are still in the company treasury.
Additional information
LUNA has earned a total of P600,000 in net income after income tax and paid out a total of P305,000 in cash dividend since incorporation.
Required: Prepare in good form the shareholders’ equity section of the 2020
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