The statement of changes in equity of Corinthian Corp. shows the following balances as of January 1, 2021: Ordinary share capital (P5 par, 250,000 shares authorized, 137,500 issued and outstanding) Share premium Unappropriated retained earnings Appropriated retained earnings Total equity The corporation had the following equity transactions for during 2021: Jan 15 Completed the building renovation for which 250,000 of retained earnings had been P 687,500 275,000 667,500 250,000 P1.880.000 restricted. Paid the contractor P242,500, all of which is capitalized. Mar 3 Issued 50,000 additional ordinary shares for P8.00 per share. May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2021, to shareholders of record on June 30, 2021. 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 cash dividend. Dec 31 Declared a property dividend to be paid on January 10, 2022, to shareholders of record on January 5, 2022. The dividend is to consist of equipment with a carrying value of P150,000. The equipment's fair value at December 31, 2021 is P157,500. 31 Reported P442,500 of net income on December 31, 2021 income statement. Required: Compute for the total equity to shown in the 2021 Statement of Changes in Equity and subsequently carried forward to the Statement of Financial Position.
The statement of changes in equity of Corinthian Corp. shows the following balances as of January 1, 2021: Ordinary share capital (P5 par, 250,000 shares authorized, 137,500 issued and outstanding) Share premium Unappropriated retained earnings Appropriated retained earnings Total equity The corporation had the following equity transactions for during 2021: Jan 15 Completed the building renovation for which 250,000 of retained earnings had been P 687,500 275,000 667,500 250,000 P1.880.000 restricted. Paid the contractor P242,500, all of which is capitalized. Mar 3 Issued 50,000 additional ordinary shares for P8.00 per share. May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2021, to shareholders of record on June 30, 2021. 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 cash dividend. Dec 31 Declared a property dividend to be paid on January 10, 2022, to shareholders of record on January 5, 2022. The dividend is to consist of equipment with a carrying value of P150,000. The equipment's fair value at December 31, 2021 is P157,500. 31 Reported P442,500 of net income on December 31, 2021 income statement. Required: Compute for the total equity to shown in the 2021 Statement of Changes in Equity and subsequently carried forward to the Statement of Financial Position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The statement of changes in equity of Corinthian Corp. shows the following balances as of January 1,
2021:
Ordinary share capital (P5 par, 250,000 shares authorized, 137,500 issued and
outstanding)
Share premium
Unappropriated retained earnings
Appropriated retained earnings
Total equity
The corporation had the following equity transactions for during 2021:
Jan 15 Completed the building renovation for which 250,000 of retained earnings had been
P 687,500
275,000
667,500
250,000
P1,880,000
restricted. Paid the contractor P242,500, all of which is capitalized.
Mar 3 Issued 50,000 additional ordinary shares for P8.00 per share.
May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2021, to shareholders of
record on June 30, 2021.
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 cash dividend.
Dec 31 Declared a property dividend to be paid on January 10, 2022, to shareholders of record on
January 5, 2022. The dividend is to consist of equipment with a carrying value of P150,000.
The equipment's fair value at December 31, 2021 is P157,500.
31 Reported P442,500 of net income on December 31, 2021 income statement.
Required: Compute for the total equity to shown in the 2021 Statement of Changes in Equity and
subsequently carried forward to the Statement of Financial Position.
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