The shareholders' equity section of Good Life Company shows the following on December 31, 2018: Ordinary shares, P10 par value; authorized 1,500,000 shares; issued and outstanding 900,000 shares Share Premium P9,000,000 750,000 2,700,000 P12,450,000 Retained earnings Total shareholders' equity Transactions during 2019 and other information relating to the shareholders' equity accounts were as follows: • On January 2, Good life reacquired 75,000 shares of its ordinary shares for P11 per share. • On May 14, Good life sold 45,000 shares of its treasury shares for P14 per share. • On June 15, Good life declared a cash dividend of P1 per share, payable on July 15, 2019 to shareholders of record on June 30, 2019. On December 20, 30,000 shares were issued in exchange for second hand equipment. It originally cost P600,000, was carried by the previous owner at a book value of P300,000, and was recently appraised at P390,000. Net income for 2019 was P850,000.

The shareholders' equity section of Good Life Company shows the following on December 31, 2018: Ordinary shares, P10 par value; authorized 1,500,000 shares; issued and outstanding 900,000 shares Share Premium P9,000,000 750,000 2,700,000 P12,450,000 Retained earnings Total shareholders' equity Transactions during 2019 and other information relating to the shareholders' equity accounts were as follows: • On January 2, Good life reacquired 75,000 shares of its ordinary shares for P11 per share. • On May 14, Good life sold 45,000 shares of its treasury shares for P14 per share. • On June 15, Good life declared a cash dividend of P1 per share, payable on July 15, 2019 to shareholders of record on June 30, 2019. On December 20, 30,000 shares were issued in exchange for second hand equipment. It originally cost P600,000, was carried by the previous owner at a book value of P300,000, and was recently appraised at P390,000. Net income for 2019 was P850,000.

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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