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7. How much is the Retained earnings, end - UNAPPROPRIATED?  8. How much is the total shareholders' equity at year-end?

7. How much is the Retained earnings, end - UNAPPROPRIATED?  8. How much is the total shareholders' equity at year-end?

FINANCIAL ACCOUNTING
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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7. How much is the Retained earnings, end - UNAPPROPRIATED? 

8. How much is the total shareholders' equity at year-end? 

HOPE Corporation was organized in 2018 to operate a manufacturing business. The following information were lifted from the records of the company pertaining to shareholders' equity as of January 1, 2021: • Ordinary shares, par value P55 per share, 200,000 shares authorized, 80,000 shares issued Preference shares, par value P105 per share, 100,000 shares authorized, 20,000 shares issued • Retained earnings balance as of January 1, 2021 amounts to P4,600,000 During the current year, the following selected transactions were completed: 1. Sold and issued 18,000 ordinary shares for cash at P90 per share to FAITH. 2. Sold and issued 5,000 preference shares for cash at P108 to FAITH. 3. Issued 2,000 ordinary shares for a piece of land that will be used for plant site. The land has a fair value of P150,000 and the shares are currently selling at P80 per share. 4. Issued 1,000 ordinary shares for services received from stock brokers. Total brokers' fee was P100,00o and the shares of stocks was selling at P75 per share. 5. Received subscriptions of 30,000 ordinary shares at P75; and 10,000 preference shares at P112. 6. Collected 60% of the previous subscriptions. 7. Full collection was made for 25,000 ordinary shares and 9,500 preference shares, thus warranting the issuance of their certificates. 8. The remaining subscriptions for ordinary shares were declared delinquent and incurred related expense amounting to P45,000. 9. Issued delinquent shares after the payment made by the highest bidder for 4,200 shares. 10. Reacquired from FAITH 4,000 ordinary shares at #58 and 1,000 preference shares at P111. 11. Sold 1,500 ordinary treasury shares at P60, and 500 preference shares at cost. 12. Retired remaining preference treasury shares. 13. Appropriation for treasury shares was made 14. Declared and paid cash dividends amounting to P870,000 15. Net income for the year amounted to P965,000
Transcribed Image Text:HOPE Corporation was organized in 2018 to operate a manufacturing business. The following information were lifted from the records of the company pertaining to shareholders' equity as of January 1, 2021: • Ordinary shares, par value P55 per share, 200,000 shares authorized, 80,000 shares issued Preference shares, par value P105 per share, 100,000 shares authorized, 20,000 shares issued • Retained earnings balance as of January 1, 2021 amounts to P4,600,000 During the current year, the following selected transactions were completed: 1. Sold and issued 18,000 ordinary shares for cash at P90 per share to FAITH. 2. Sold and issued 5,000 preference shares for cash at P108 to FAITH. 3. Issued 2,000 ordinary shares for a piece of land that will be used for plant site. The land has a fair value of P150,000 and the shares are currently selling at P80 per share. 4. Issued 1,000 ordinary shares for services received from stock brokers. Total brokers' fee was P100,00o and the shares of stocks was selling at P75 per share. 5. Received subscriptions of 30,000 ordinary shares at P75; and 10,000 preference shares at P112. 6. Collected 60% of the previous subscriptions. 7. Full collection was made for 25,000 ordinary shares and 9,500 preference shares, thus warranting the issuance of their certificates. 8. The remaining subscriptions for ordinary shares were declared delinquent and incurred related expense amounting to P45,000. 9. Issued delinquent shares after the payment made by the highest bidder for 4,200 shares. 10. Reacquired from FAITH 4,000 ordinary shares at #58 and 1,000 preference shares at P111. 11. Sold 1,500 ordinary treasury shares at P60, and 500 preference shares at cost. 12. Retired remaining preference treasury shares. 13. Appropriation for treasury shares was made 14. Declared and paid cash dividends amounting to P870,000 15. Net income for the year amounted to P965,000
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