The shareholders’ equity section of Pottery Corporation’s statement of financial position as of December 31, 2019, is as follows: Ordinary shares, P10, par value; authorized, 2,000,000 shares; issued 400,000 shares P4,000,000 Share premium 1,700,000 Accumulated profits 6,000,000 Total P11,700,000
The shareholders’ equity section of Pottery Corporation’s
|
Ordinary shares, P10, par value; authorized, |
|
|
Share premium |
1,700,000 |
|
|
6,000,000 |
|
Total |
P11,700,000 |
The following transactions occurred during 2020:
|
Jan. 5 |
10,000 shares of authorized and unissed ordinary shares were sold P17 per share. The company incurred share issue cost at P1 per share. |
|
Jan. 16 |
Declared a cash dividends of P1 per share, payable February 15 to shareholders of record February 5. |
|
Feb. 20 |
Reacquired 50,000 shares as treasury shares at P20 per share. |
|
Feb. 25 |
20,000 shares of authorized and unissued ordinary shares were issued in exchange of an equipment having a fair market value of P500,000. The company incurred share issue costs at P20,000. |
|
Mar. 1 |
A 30% stock dividend was declared and issued. Market value of shares on this date was at P30. |
|
Apr. 1 |
A two-for-one split was carried out. Market value of shares on this date was at P18 per share. |
|
May 30 |
Reissued half of the treasury shares at P14 per share. |
|
July 1 |
A 15% stock dividend was declared and issued. Market value is currently at P20 per share. |
|
Aug. 1 |
A cash dividend of P.50 per share was declared payable September 1 to shareholders of record on August 21. |
|
Dec. 31 |
Adjusted net income for the year is at P2,150,000. |
Determine the balance of the Total
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