The following selected accounts appeared in the ledger of. M. Penaflor Corporation on uly 2017, the beginning of the current fiscal year: 4% Preference Shares, P50 par, 10,000 shares authorized, 7,000 shares issued Share Premium-Preference P350,000 28,000 Ordinary Shares, P20 par, 50,000 shares authorized, 25,000 shares issued Share Premium-Ordinary Retained Earnings 500,000 90,000 537,000 During the year, the corporation completed a number of transactions affecting the shareholders' equity. They are summarized as follows: a. Purchased 2,000 shares of treasury-ordinary for P55,000. b. Sold 500 shares of treasury-ordinary for P16,000. C. Issued 5,000 ordinary shares at P30, receiving cash. d. Sold 1,000 shares of preference 4% share at P52.50. e. Sold 600 shares of treasury-ordinary for P15,600. f. Declared cash dividends of P2 per share on preference shares and P1 per share on ordinary shares. g. Paid the cash dividends. h. The board of directors authorized the appropriation necessitated by the holding of treasury stock. Required: 1. Journalize the entries to record the transactions 2. Prepare the statement of changes in shareholders' equity for the year ended June 30. 2018. The profit for the year was P165,000.

The following selected accounts appeared in the ledger of. M. Penaflor Corporation on uly 2017, the beginning of the current fiscal year: 4% Preference Shares, P50 par, 10,000 shares authorized, 7,000 shares issued Share Premium-Preference P350,000 28,000 Ordinary Shares, P20 par, 50,000 shares authorized, 25,000 shares issued Share Premium-Ordinary Retained Earnings 500,000 90,000 537,000 During the year, the corporation completed a number of transactions affecting the shareholders' equity. They are summarized as follows: a. Purchased 2,000 shares of treasury-ordinary for P55,000. b. Sold 500 shares of treasury-ordinary for P16,000. C. Issued 5,000 ordinary shares at P30, receiving cash. d. Sold 1,000 shares of preference 4% share at P52.50. e. Sold 600 shares of treasury-ordinary for P15,600. f. Declared cash dividends of P2 per share on preference shares and P1 per share on ordinary shares. g. Paid the cash dividends. h. The board of directors authorized the appropriation necessitated by the holding of treasury stock. Required: 1. Journalize the entries to record the transactions 2. Prepare the statement of changes in shareholders' equity for the year ended June 30. 2018. The profit for the year was P165,000.

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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