FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Gary Company reported the following amounts in the equity section of its Dec. 31, 2020, statement of financial position.

Share capital - Preference. 8%, P100 par (10,000 shares authorized, 2,000 shares issued)     P200,000

Share capital-ordinary, P5 par (100,000 shares authorized, 20,000 shares issued)                   100,000

Share premium                                                                   125,000                

Retained earnings                                                                450,000

Total                                                                                      875,000

 

During 2021, Gary took part in the following transactions concerning equity.

  1. Paid the annual 2020 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on Dec. 31, 2020.
  2. Purchase 2,700 shares of its own outstanding ordinary shares for P40 per share. Gary uses the cost method.
  3. Reissued 700 treasury shares for land valued at P30,000.
  4. Issued 500 preference shares at P105 per share.
  5. Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for P45 per share.
  6. Issued the share dividend.
  7. Declared the annual 2021 P8 per share dividend on preference shares and the P2 per share dividend on ordinary shares. These dividends are payable in 2022.
  8. Profit for 2021 is P330,000.

 

Required:

Prepare a statement of changes in equity for the year ended Dec. 31, 2021.

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