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,
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.
- 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. - Purchase 2,700 shares of its own outstanding ordinary shares for P40 per share. Gary uses the cost method.
- Reissued 700 treasury shares for land valued at P30,000.
- Issued 500 preference shares at P105 per share.
- Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for P45 per share.
- Issued the share dividend.
- 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.
- 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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