The shareholders’ equity section of Corporation’s statement of financial position as of December 31, 2019 is shown below: Ordinary share capital (P5 par, 250,000 shares authorized, 137,500 shares issued and outstanding) P 687,500 Share premium 275,000 Total paid-in capital P 962,500 Unappropriated retained earnings 667,500 Appropriated retained earnings 250,000 Total retained earnings 917,500 Total shareholders’ equity P1,880,000 Buenas had the following shareholders’ equity transactions during 2020: Jan 15 Completed the building renovation for which P250,000 of retained earnings had been restricted. Paid the contractor P242,500, all of which is capitalized. Mar 3 Issued 50,000 additional ordinary shares for P8 per share. May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2020 to shareholders of record on June 30, 2020. June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is P200,000 and retained earnings are to be restricted for that amount. July 31 Paid the dividend. Dec 31 Declared a property dividend to be paid on January 10, 2021 to shareholders of record on January 5, 2021. The dividend is to consist of equipment with a carrying value of P150,000. The equipment’s fair value at December 31, 2020 is P157,500. Dec 31 Reported P442,500 of net income on December 31, 2020 income statement. Required: Determine the amounts that should be reported for the following at December 31, 2020: a. Ordinary share capital
The shareholders’ equity section of Corporation’s
Ordinary share capital (P5 par, 250,000 shares authorized,
137,500 shares issued and outstanding) P 687,500
Share premium 275,000
Total paid-in capital P 962,500
Unappropriated
Appropriated retained earnings 250,000
Total retained earnings 917,500
Total shareholders’ equity P1,880,000
Buenas had the following shareholders’ equity transactions during 2020:
Jan 15 Completed the building renovation for which P250,000 of retained earnings had been restricted. Paid the contractor P242,500, all of which is capitalized.
Mar 3 Issued 50,000 additional ordinary shares for P8 per share.
May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2020 to shareholders of record on June 30, 2020.
June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is P200,000 and retained earnings are to be restricted for that amount.
July 31 Paid the dividend.
Dec 31 Declared a property dividend to be paid on January 10, 2021 to shareholders of record on January 5, 2021. The dividend is to consist of equipment with a carrying value of P150,000. The equipment’s fair value at December 31, 2020 is P157,500.
Dec 31 Reported P442,500 of net income on December 31, 2020 income statement.
Required:
Determine the amounts that should be reported for the following at December 31, 2020:
a. Ordinary share capital
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