WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?

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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
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WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?

Statement of Changes in Equity. The following balances were taken from the December
31, 2020 financial statements of PATRICK STAR, Inc.:
Ordinary share capital, P100 par
P
5,500,000
Reserves
3,500,000
Retained earnings, unappropriated
Treasury shares, at cost
4,250,000
(.
450,000 )
P
13,700,000
The following transactions happened during 2021:
• PATRICK STAR discovered that it had failed to record its annual depreciation
expense for 2018 amounting to P35,000.
• 35,000 additional ordinary shares were issued at a price of P120 per share.
• 2,500 of its 3,000 treasury shares were reissued at P200.
• Profit during the year was P2,500,000.
• Unrealized gain on FVOCI investments, post-tax, was P175,000
Transcribed Image Text:Statement of Changes in Equity. The following balances were taken from the December 31, 2020 financial statements of PATRICK STAR, Inc.: Ordinary share capital, P100 par P 5,500,000 Reserves 3,500,000 Retained earnings, unappropriated Treasury shares, at cost 4,250,000 (. 450,000 ) P 13,700,000 The following transactions happened during 2021: • PATRICK STAR discovered that it had failed to record its annual depreciation expense for 2018 amounting to P35,000. • 35,000 additional ordinary shares were issued at a price of P120 per share. • 2,500 of its 3,000 treasury shares were reissued at P200. • Profit during the year was P2,500,000. • Unrealized gain on FVOCI investments, post-tax, was P175,000
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