An entity reported the following equity on December 31, 2023: Ordinary share capital, P25 par value, 400,000 shares issued : 10,000,000Share premium- ordinary : 4,250,000Retained earnings : 15,000,000The following events occurred during 2023:February 1 : 12,000 ordinary shares were sold for P40 per share.March 16 : Declared and paid cash dividend of P1 per share to the ordinary shareholders.March 20 : 20,000, 10% P50 par value cumulative preference shares were sold for P60 per share. The preference shares have a liquidation price of P55 per share.March 31 : 30% ordinary share dividend was issued. Fair value per share is currently P45.April 15 : A 2-for-1 split was carried out on the ordinary shares.July 1 : 30,000 preference shares were sold for P70 per share.October 1 : 50,000 ordinary shares were sold for P30 per share.December 31 : Net income for the year was P2,250,000.What amount of ordinary share capital should be reported on December 31, 2023? 14,015,00015,265,00016,515,00028,030,000

To determine the amount of ordinary share capital that should be reported on December 31, 2023, we…

Answered: An entity reported the following equity…

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Chapter16: Retained Earnings And Earnings Per Share

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An entity reported the following equity on December 31, 2023:

The following events occurred during 2023:

February 1 : 12,000 ordinary shares were sold for P40 per share.
March 16 : Declared and paid cash dividend of P1 per share to the ordinary shareholders.
March 20 : 20,000, 10% P50 par value cumulative preference shares were sold for P60 per share. The preference shares have a liquidation price of P55 per share.
March 31 : 30% ordinary share dividend was issued. Fair value per share is currently P45.
April 15 : A 2-for-1 split was carried out on the ordinary shares.
July 1 : 30,000 preference shares were sold for P70 per share.
October 1 : 50,000 ordinary shares were sold for P30 per share.
December 31 : Net income for the year was P2,250,000.

What amount of ordinary share capital should be reported on December 31, 2023?

14,015,000

15,265,000

16,515,000

28,030,000

Expert Solution