The capital accounts of Earth Co. on January 1, 2021 are as follows: 5% Preference...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The capital accounts of Earth Co. on January 1, 2021 are as follows: 5% Preference share capital, P100 par, 50,000 shares P5,000,000 Preference share premium 250,000 Ordinary share capital, P20 par, 250,000 shares authorized 3,000,000 Ordinary share premium 750,000 Retained earnings 1,500,000 The following transactions affected the transactions affected the shareholders' equity of the statement of financial position during 2021: . Reacquired 5.000 ordinary shares at P16 Issued 500 ordinary shares in settlement of a liability of P12,500 Declared the regular dividends on preference shares and a cash dividend of P2.00 per share on ordinary shares Reissued 2,000 treasury shares in exchange for land valued at P50,000 The ordinary shares were split two for one Reported net profit of P200,000 for the year. After the share split, the number of ordinary shares issued and outstanding will be
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
