4. What is the total share capital?5. What is the retained earningsbalance at the end of the year?6. What is the total shareholders'equity? e.Cash Dividends [RE]f.Cash Dividends PayableCashIncome SummaryCash Dividends PayableRetained Earningsh.Retained EarningsCash Dividends payable$7,500.00P7,500.00P40,000.00$7,500.00$7,500.00$7,500.00P40,000.00$7,500.00 Shareholders' Equity TransactionsR. Carpio Products, Inc. was formedat the beginning of the year.Ordinary share has aP25 par value. The following entriesaffected the shareholders' equityduring its firstyear's operations:a.CashOrdinary SharesShare Premium-Ordinaryb.Organization ExpenseOrdinary SharesShare Premium-OrdinaryCashOffice EquipmentBuildingAccounts PayableOrdinary SharesShare Premium-OrdinaryP160,000.00#77,500.00P29,000.00P10,750.00P30,000.00P125,000.00P35,000.00P,500.00P15,000.00P29,750.00P25,000.00P15,000.00

The total share capital is calculated as sum of par value and additional paid in capital. The…

Answered: What is the total share capital? 5.…

What is the total share capital? 5. What is the retained earnings balance at the end of the year? 6. What is the total shareholders' equity?

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

4. What is the total share capital? 5. What is the retained earnings balance at the end of the year? 6. What is the total shareholders' equity?

e.
Cash Dividends [RE]
f.
Cash Dividends Payable
Cash
Income Summary
Cash Dividends Payable
Retained Earnings
h.
Retained Earnings
Cash Dividends payable
$7,500.00
P7,500.00
P40,000.00
$7,500.00
$7,500.00
$7,500.00
P40,000.00
$7,500.00

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
Cash
Office Equipment
Building
Accounts Payable
Ordinary Shares
Share Premium-Ordinary
P160,000.00
#77,500.00
P29,000.00
P10,750.00
P30,000.00
P125,000.00
P35,000.00
P,500.00
P15,000.00
P29,750.00
P25,000.00
P15,000.00

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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