AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10 par value ordinary share at P15 per share. During the period January 1, 2018, through December 31, 2020, AGUILA reported a net income of P3,000,000 and paid cash dividends of P500,000. On January 5, 2020, AGUILA purchased 50,000 shares of its ordinary share at P20 per share. On December 31, 2020, 45,000 treasury shares were sold at P30 per share, and retired the remaining treasury shares. The accountant presented AGUILA’S Total Shareholders’ Equity of P10,850,000. As an auditor of the company, what is the correct total shareholders’ equity to be presented on December 31, 2020? Answer in figures, ignore the peso sign.
AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10 par value ordinary share at P15 per share. During the period January 1, 2018, through December 31, 2020, AGUILA reported a net income of P3,000,000 and paid cash dividends of P500,000. On January 5, 2020, AGUILA purchased 50,000 shares of its ordinary share at P20 per share. On December 31, 2020, 45,000 treasury shares were sold at P30 per share, and retired the remaining treasury shares. The accountant presented AGUILA’S Total Shareholders’ Equity of P10,850,000. As an auditor of the company, what is the correct total shareholders’ equity to be presented on December 31, 2020? Answer in figures, ignore the peso sign.
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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AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10 par value ordinary share at P15 per share. During the period January 1, 2018, through December 31, 2020, AGUILA reported a net income of P3,000,000 and paid cash dividends of P500,000. On January 5, 2020, AGUILA purchased 50,000 shares of its ordinary share at P20 per share. On December 31, 2020, 45,000 treasury shares were sold at P30 per share, and retired the remaining treasury shares.
The accountant presented AGUILA’S Total Shareholders’ Equity of P10,850,000.
As an auditor of the company, what is the correct total shareholders’ equity to be presented on December 31, 2020?
Answer in figures, ignore the peso sign.
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