What is the profit for the year? 2. How many ordinary shares are outstanding? 3. What is the legal capital?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. What is the profit for the year? 2. How many ordinary shares are outstanding? 3. What is the legal capital?
Shareholders' Equity Transactions
R. Carpio Products, Inc. was formed
at the beginning of the year.
Ordinary share has a
P25 par value. The following entries
affected the shareholders' equity
during its first
year's operations:
a.
Cash
Ordinary Shares
Share Premium-Ordinary
b.
Organization Expense
Ordinary Shares
Share Premium-Ordinary
C.
h
Cash
Office Equipment
Building
Accounts Payable
Ordinary Shares
Share Premium-Ordinary
P160,000.00
P77,500.00
P29,000.00
P10,750.00
P30,000.00
$125,000.00
P35,000.00
#62,500.00
P15,000.00
P29,750.00
P25,000.00
P15,000.00
Transcribed Image Text:Shareholders' Equity Transactions R. Carpio Products, Inc. was formed at the beginning of the year. Ordinary share has a P25 par value. The following entries affected the shareholders' equity during its first year's operations: a. Cash Ordinary Shares Share Premium-Ordinary b. Organization Expense Ordinary Shares Share Premium-Ordinary C. h Cash Office Equipment Building Accounts Payable Ordinary Shares Share Premium-Ordinary P160,000.00 P77,500.00 P29,000.00 P10,750.00 P30,000.00 $125,000.00 P35,000.00 #62,500.00 P15,000.00 P29,750.00 P25,000.00 P15,000.00
d
Cash
Ordinary Shares
Share Premium-Ordinary
Cash Dividends Payable
e.
Cash Dividends [RE]
f.
Cash Dividends Payable
Cash
Income Summary
Retained Earnings
h.
Retained Earnings
Cash Dividends payable
P70,000.00
P7,500.00
P7,500.00
P40,000.00
P7.500.00
P37,500.00
P32,500.00
P7,500.00
P7,500.00
P40,000.00
P7.500.00
Transcribed Image Text:d Cash Ordinary Shares Share Premium-Ordinary Cash Dividends Payable e. Cash Dividends [RE] f. Cash Dividends Payable Cash Income Summary Retained Earnings h. Retained Earnings Cash Dividends payable P70,000.00 P7,500.00 P7,500.00 P40,000.00 P7.500.00 P37,500.00 P32,500.00 P7,500.00 P7,500.00 P40,000.00 P7.500.00
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