Problem #30Preparation of the Shareholders' Equity Section of a Statement of Financial PositionPreparation of the Shareholders' Equity Section of a Statement of Financial PositionCorporation on June 30, 2019. Each account has a normal balance.The accounts listed below were taken from the general ledger of the Liggayucorporation on June 30, 2019. Each account has a normal balance.Ordinary SharesP1,300,000Share Premium-P 325,000PreferenceSubscribed Ordinary SharesOrdinary Shares Dividend100,000Share Premium-Treasury17,50062,500Donated CapitalDistributable70,000Treasury Stock-Ordinary(3,000 shares)Share Premium-OrdinaryRetained Earnings:117,5002,075,000UnappropriatedAppropriated for PlantExpansion1,870,0007% Preference Shares250,000125,0007% Preference Shares-Subscribed25,000Additional Information:a. Preference share has a par value of P50 per share. Liggayu was authorized to issue10,000 shares. The preference share is cumulative and participating.b. Ordinary share has a par value of P5 per share. Liggayu was authorized to issue500,000 shares.Required:1. Prepare the shareholders' equity section of Liggayu Corporation's June 30, 2019statement of financial position.2. Use the par values of preference and ordinary shares to calculate the number ofshares issued and outstanding.

Any amount of money or assets bought into the company in return for the shares of the company is…

Answered: Preparation of the S The accounts…

Business

Accounting

Preparation of the S The accounts listec Corporation on June

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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