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2. The shareholders' equity section of ABC Corporation as at Dec 31, 2021 appeared as follows: 6% Preference shares, P75 par, 200,000 shares authorized, 70,000 shares issued Ordinary shares, P5 stated value, 500,000 shares authorized, ? shares issued and ? shares outstanding Share premium- ordinary Retained earnings Total share capital and retained earnings Less: Treasury stock - ordinary, 10,000 shares, at cost Total shareholders' equity 500,000 600,000 1,000,000 40,000 Required: Determine the following a. Issue price of preference shares b. Ordinary shares issued c. Ordinary shares outstanding

2. The shareholders' equity section of ABC Corporation as at Dec 31, 2021 appeared as follows: 6% Preference shares, P75 par, 200,000 shares authorized, 70,000 shares issued Ordinary shares, P5 stated value, 500,000 shares authorized, ? shares issued and ? shares outstanding Share premium- ordinary Retained earnings Total share capital and retained earnings Less: Treasury stock - ordinary, 10,000 shares, at cost Total shareholders' equity 500,000 600,000 1,000,000 40,000 Required: Determine the following a. Issue price of preference shares b. Ordinary shares issued c. Ordinary shares outstanding

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 12E
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Subject: Financial Accounting and Reporting

 

Required: Determine the following
a. Issue price of preference shares
b. Ordinary shares issued
c. Ordinary shares outstanding
d. Issue price of ordinary shares
e. Legal capital of the corporation
f. Contributed capital of the corporation
g. Total shareholders’ equity
h. Cost per treasury share

Part 1- Equity 1. Present the shareholders' equity section of the statement of financial position as of December 31, 2021, given the following trial balance of ABC Corporation: P 4,000,000 17% Notes payable, due May 1, 2023 Allowance for uncollectible accounts 60,000 Ordinary shares, no-par. P20 stated value; 300,000 shares authorized, issued and outstanding Retained earnings - unappropriated Cash dividends payable (declared Dec 15 on preference shares) Appropriation for pending litigation 6% Preference shares, P200 par, 3,000 shares authorized, issued and outstanding Donated capital Share premium - preference 6,000,000 500,000 14,000 600,000 600,000 400,000 10,000 2. The shareholders' equity section of ABC Corporation as at Dec 31, 2021 appeared as follows: 6% Preference shares, P75 par, 200,000 shares authorized, 70,000 shares issued Ordinary shares, P5 stated value, 500,000 shares authorized, ? shares issued and ? shares outstanding Share premium – ordinary Retained earnings 500,000 600,000 1,000,000 Total share capital and retained earnings Less: Treasury stock – ordinary, 10,000 shares, at cost Total shareholders' equity 40,000 Required: Determine the following a. Issue price of preference shares b. Ordinary shares issued c. Ordinary shares outstanding d. Issue price of ordinary shares e. Legal capital of the corporation f. Contributed capital of the corporation g. Total shareholders' equity h. Cost per treasury share
Transcribed Image Text:Part 1- Equity 1. Present the shareholders' equity section of the statement of financial position as of December 31, 2021, given the following trial balance of ABC Corporation: P 4,000,000 17% Notes payable, due May 1, 2023 Allowance for uncollectible accounts 60,000 Ordinary shares, no-par. P20 stated value; 300,000 shares authorized, issued and outstanding Retained earnings - unappropriated Cash dividends payable (declared Dec 15 on preference shares) Appropriation for pending litigation 6% Preference shares, P200 par, 3,000 shares authorized, issued and outstanding Donated capital Share premium - preference 6,000,000 500,000 14,000 600,000 600,000 400,000 10,000 2. The shareholders' equity section of ABC Corporation as at Dec 31, 2021 appeared as follows: 6% Preference shares, P75 par, 200,000 shares authorized, 70,000 shares issued Ordinary shares, P5 stated value, 500,000 shares authorized, ? shares issued and ? shares outstanding Share premium – ordinary Retained earnings 500,000 600,000 1,000,000 Total share capital and retained earnings Less: Treasury stock – ordinary, 10,000 shares, at cost Total shareholders' equity 40,000 Required: Determine the following a. Issue price of preference shares b. Ordinary shares issued c. Ordinary shares outstanding d. Issue price of ordinary shares e. Legal capital of the corporation f. Contributed capital of the corporation g. Total shareholders' equity h. Cost per treasury share
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