What amount should be reported as total shareholders’ equity on December 31, 2017?
SHAREHOLDER’S EQUITY
The following
Cash |
6,000,000 |
|
|
14,000,000 |
|
Inventory |
10,000,000 |
|
Property, plant and equipment |
25,000,000 |
|
Accounts payable |
|
9,000,000 |
Income tax payable |
|
6,000,000 |
|
|
3,000,000 |
Ordinary share capital |
|
15,000,000 |
Share premium |
|
4,000,000 |
|
|
9,000,000 |
Net sales and other revenue |
|
80,000,000 |
Cost of goods sold |
48,000,000 |
|
Expenses |
12,000,000 |
|
Income tax expense |
11,000,000 |
__________ |
|
126,000,000 |
126,000,000 |
During the year, estimated tax payments of P5,000,000 were charged to income tax expense. The tax rate is 30% on all types of revenue. Inventory and accounts payable included goods purchased in transit, FOB destination, costing P500,000, and unsold goods held on consignment at year-end, costing P300,000. The perpetual system is used. The preference share capital is redeemable mandatorily on December 31, 2018.
- What amount should be reported as total shareholders’ equity on December 31, 2017?
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)