The shareholder's equity of ABC Company at December 31,2018 is presented below: 12% Preference share capital, P 200 par, 20,000 shares issued and outstanding P 4,000,000 Ordinary share capital, P 30 par, 300,000 shares issued and outstanding 9,000,000 Share premium – Preference 750,000 Additional paid in capital in excess of stated value - Ordinary 1,000,000 Retained earnings 3,000,000 The following selected transactions relating to shareholder's equity were noted in 2019: a.) Purchased and retired 2,000 preference shares at P 230 each. b.) Purchased 30,000 of its own ordinary shares at P 35 per share. c.) Reissued 5,000 treasury shares at P 40 each. d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share. e.) One half of the donated shares were issued for P 39 each. f.) Profit for 2019 was P 1,850,000. g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 per ordinary share dividend.

The shareholder's equity of ABC Company at December 31,2018 is presented below: 12% Preference share capital, P 200 par, 20,000 shares issued and outstanding P 4,000,000 Ordinary share capital, P 30 par, 300,000 shares issued and outstanding 9,000,000 Share premium – Preference 750,000 Additional paid in capital in excess of stated value - Ordinary 1,000,000 Retained earnings 3,000,000 The following selected transactions relating to shareholder's equity were noted in 2019: a.) Purchased and retired 2,000 preference shares at P 230 each. b.) Purchased 30,000 of its own ordinary shares at P 35 per share. c.) Reissued 5,000 treasury shares at P 40 each. d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share. e.) One half of the donated shares were issued for P 39 each. f.) Profit for 2019 was P 1,850,000. g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 per ordinary share dividend.

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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