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 andoutstanding)Share premiumUnappropriated retained earningsAppropriated retained earningsTotal equityThe corporation had the following equity transactions for during 2021:Jan 15 Completed the building renovation for which 250,000 of retained earnings had beenP 687,500275,000667,500250,000P1.880.000restricted. 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 ofrecord on June 30, 2021.June 19 Approved additional building renovation to be funded internally. The estimated cost of theproject 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 onJanuary 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 andsubsequently carried forward to the Statement of Financial Position.

Equity shares are the capital of the company that is held in the hands of the shareholders of the…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Accounting On 1 January 2021, ADE Ltd. reported the following in shareholders' equity: Preferred shares, no-par value; authorized, unlimited shares; issued, 100,000 shares 2,500,000 Common shares, no-par value; authorized, unlimited shares; issued, 620,000 shares 4,960,000 Contributed capital on retirement of preferred shares 30,000 Retained earnings 3,850,000 The company acquired and retired shares in the following sequence during 2021: Retired 20,000 common shares at $12 per share. a. Retired 30,000 common shares at $6 per share. o. Retired 10,000 preferred shares at $30 per share. c. Retired 5,000 preferred shares at $22 per share. Required: 1. Prepare journal entries for the share retirement transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Retired 20,000 common shares at $12 per share. Common shares (20000 a. Retired 30,000 common shares at $6 per share. a. Retired 10,000 preferred shares at $30 per…
Prince Corporation's accounts provided the following information at December 31, 2019: Total income since incorporation $840,000 Total cash dividends paid 260,000 Total value of stock dividends distributed 60,000 Additional paid-in capital from treasury stock 140,000 What should be the current balance of retained earnings? a.$670,000 b.$580,000 c.$610,000 d.$520,000
The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss?Using the data, how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. Using the data, how much will be credited to Cash? Using the data, how much will be debited to Ordinary Share Premium??
The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings Required: ($ in millions) $ 240 1,680 1 1,100 1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2024, TNL Systems purchased 6 million shares at $10 per share. b. On July 9, 2024, the corporation sold 2 million shares at $12 per share. c. On November 14, 2026, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 2024-2026…
Selected information from the accounts of Colossians Co. at December31, 2021 reveals that the total income since incorporation is P420,000; the total cash dividends paid is P130,000; the total value of propertydividends distributed is P30,000; and the excess of proceeds over cost of treasury shares sold is P110,000. In its December 31, 2021 statement of changes in equity, what amount should the firm report as accumulated profits (retained earnings)? A.P260,000B.P290,000C.P370,000D.P400,000 Goliath Company purchased an equipment on January 2, 2017 forP3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being depreciated on a straight-line basis. In January 2020, Goliath Company determined that the equipment had a useful life of 8 years from the date of acquisition with no salvage value. What should be the carrying amount of the equipment as of December 31, 2020? A.P300,000B.P500,000C.P1,200,000D.P1,800,000 Bayabas…
7. How much is the Retained earnings, end - UNAPPROPRIATED? 8. How much is the total shareholders' equity at year-end?
1. How much is the Retained earnings, end - UNAPPROPRIATED? 2. How much is the total shareholders' equity at year-end? 3. What is the number of outstanding ordinary shares?
On December 31, 2022, the equity accounts of Book Creations, Inc., contained the following balances: Common stock ($10 par, 100,000 shares authorized) 30,000 shares issued and outstanding $300,000 Retained earnings $476,600 For the year 2022, the corporation had net income before income taxes of $176,300, income taxes of $35,260, and net income after taxes of $141,040. The corporation’s tax rate is 20 percent.An expansion of the existing plant at a cost of $564,300 is planned. The corporation’s president, who owns 60 percent of the corporation’s common stock, estimates that the expansion would result in an increased net income of approximately $176,300 before interest and taxes. The financial vice president forecasts that the increase would be only $88,150. Management is considering two possibilities for financing: Issuance of 20,000 additional shares of common stock for $29 per share. Issuance of $564,300 face amount, 10-year, 6 percent bonds payable, secured by a…
On December 31, 2022, the equity accounts of Book Creations, Inc., contained the following balances: Common stock ($10 par, 100,000 shares authorized) 30,000 shares issued and outstanding $300,000 Retained earnings $476,600 For the year 2022, the corporation had net income before income taxes of $176,300, income taxes of $35,260, and net income after taxes of $141,040. The corporation’s tax rate is 20 percent.An expansion of the existing plant at a cost of $564,300 is planned. The corporation’s president, who owns 60 percent of the corporation’s common stock, estimates that the expansion would result in an increased net income of approximately $176,300 before interest and taxes. The financial vice president forecasts that the increase would be only $88,150. Management is considering two possibilities for financing: Issuance of 20,000 additional shares of common stock for $29 per share. Issuance of $564,300 face amount, 10-year, 6 percent bonds payable, secured by a…
The following balances were taken from the records of Cullumber Company: Common stock (1/1/20 and 12/31/20) $724, 200 Retained earnings 1/1/20 $ 161,000 Net income for 2023 181,000 Dividends declared in 2023 (41,000) Retained earnings, 12/31/20 301,000 Total stockholders' equity on 12/31/20 $ 1,025, 200 Marigold Company purchased 75% of Cullumber Company's common stock on January 1, 2021 for $901,500. The difference between implied value and book value is attributable to assets with a remaining useful life on January 1, 2023 of ten years. (a) Compute the difference between cost/(implied) and book value applying: Difference 1. Parent company theory $ 2. Economic unit theory $
National Supply's shareholders' equity included the following accounts at December 31, 2020: $ Shareholders' Equity Common stock 6,000,000 shares $1 par $6,000,000 Paid-in Capital in excess of par $30,000,000 Retained earnings $6,500,000 REQUIRED: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions 15-Feb-21 Reacquired 300,000 shares at $8 per share 17-Feb- 22 Reacquired 300,000 shares at $5.50 per share 9-Nov-23 Sold 200,000 shares at $7 per share 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are a) retired and b) accounted for as treasury stock. Net income was $14,000,000 in 2021 $15,000,000 in 2022 $16,000,000 in 2023
The shareholders’ equity section of Memphis Company as of December 31,2018 before closing its books and recording the 2018 dividends is as follows: Ordinary share, 100,000 shares issued and outstanding P 3,000,000 Ordinary share premium 4,000,000 Retained earnings 8,000,000 Memphis’ board of directors declared a 20% share capital dividend on December 31, 2018 when the market value of each share was P 70. The corporation’s 2018 operations resulted to a loss P 1,200,000. What amount should Memphis report as retained earnings as of December 31, 2018? ____________________