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See the attached image for information: a. How many treasury shares are held by the corporation as of December 31, 2021? (Provide solution) b. How much is the total shareholders’ equity as of December 31, 2021? (Provide solution)

See the attached image for information: a. How many treasury shares are held by the corporation as of December 31, 2021? (Provide solution) b. How much is the total shareholders’ equity as of December 31, 2021? (Provide solution)

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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See the attached image for information:

a. How many treasury shares are held by the corporation as of December 31, 2021? (Provide solution)
b. How much is the total shareholders’ equity as of December 31, 2021? (Provide solution)

The shareholders' equity of Laguz Inc. as of January 1, 2021, is as follows: Share Capital Ordinary Shares, P6 par value P1,500,000 1,000,000 shares authorized, 250,000 shares issued and outstanding Share Premium - Ordinary 820,000 Total Share Capital P2,320,000 970,000 Retained Earnings - Unappropriated Total Shareholders' Equity P3,290,000 Transactions for the year 2021 were as follows: Jan. 5 Jan. 10 The board of directors declared a 2-for-1 share split. The board of directors obtained authorization to issue 50,000 non-cumulative 6% preference shares with a par value of P100. Feb. 3 Issued 12,000 ordinary shares for a building appraised at P96,000. Mar. 15 Purchased 8,000 ordinary shares for P64,000. Apr. 6 Issued 20,000 preference shares for P100 per share. Sold 5,000 treasury shares for P35,000. May 10 Jun. 19 Declared cash dividends of P6 per preference share and P0.20 per ordinary share. Jul. 14 Date of record for the dividends. Aug. 18 Sept. 22 Paid the preference and ordinary shares cash dividends. Declared a 10% share dividend on ordinary shares. The market value was P10 per share. Nov. 20 The share dividend was distributed to the ordinary shareholders. Dec. 31 The profit for the year was P340,000
Transcribed Image Text:The shareholders' equity of Laguz Inc. as of January 1, 2021, is as follows: Share Capital Ordinary Shares, P6 par value P1,500,000 1,000,000 shares authorized, 250,000 shares issued and outstanding Share Premium - Ordinary 820,000 Total Share Capital P2,320,000 970,000 Retained Earnings - Unappropriated Total Shareholders' Equity P3,290,000 Transactions for the year 2021 were as follows: Jan. 5 Jan. 10 The board of directors declared a 2-for-1 share split. The board of directors obtained authorization to issue 50,000 non-cumulative 6% preference shares with a par value of P100. Feb. 3 Issued 12,000 ordinary shares for a building appraised at P96,000. Mar. 15 Purchased 8,000 ordinary shares for P64,000. Apr. 6 Issued 20,000 preference shares for P100 per share. Sold 5,000 treasury shares for P35,000. May 10 Jun. 19 Declared cash dividends of P6 per preference share and P0.20 per ordinary share. Jul. 14 Date of record for the dividends. Aug. 18 Sept. 22 Paid the preference and ordinary shares cash dividends. Declared a 10% share dividend on ordinary shares. The market value was P10 per share. Nov. 20 The share dividend was distributed to the ordinary shareholders. Dec. 31 The profit for the year was P340,000
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