Use the following information for the next four (4) questions:On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023: January 1Issued 40,000 ordinary shares at P130 per share.February 1Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land-None Building1,100,000Fair value Ordinary shares P120Fair valueJuly 1Purchased 10,000 ordinary shares at P150 per share to be held as treasury.August 1Declared a 2 for 1 split.September 15Reissued 5,000 treasury shares at P100 per shareDecember 31Declared a P10 per share cash dividend on the ordinary shares.December 31Net income for the year is P3,000,000.What is the total shareholders’ equity at December 31, 2023?Group of answer choices9,425,0008,950,0009,550,0008,925,000

The shareholder's equity gets increased by issuance of shares, net income and decrease by net loss,…

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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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Use the following information for the next four (4) questions:

On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023:

January 1	Issued 40,000 ordinary shares at P130 per share.
February 1	Issued 30,000 ordinary for the following assets:
	Machine	500,000	Fair value
	Land	-	None
	Building	1,100,000	Fair value
	Ordinary shares	P120	Fair value
July 1	Purchased 10,000 ordinary shares at P150 per share to be held as treasury.
August 1	Declared a 2 for 1 split.
September 15	Reissued 5,000 treasury shares at P100 per share
December 31	Declared a P10 per share cash dividend on the ordinary shares.
December 31	Net income for the year is P3,000,000.

What is the total shareholders’ equity at December 31, 2023?

Group of answer choices

9,425,000

8,950,000

9,550,000

8,925,000

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