Durham Company had two classes of shares outstanding, 10% P100 par preference share capital and P10 par ordinary share capital. During the fiscal year ending June 30, 2022, the entity had the following transactions affecting shareholders’ equity: Number of SharesPrice per ShareIssue of preference shares5,000140Issue of ordinary shares20,00070Retirement of preference shares1,000150Purchase of treasury ordinary shares5,00080Share split , par value reduced to P52 for 1 Reissue of treasury ordinary shares5,00052The balances of the accounts in the shareholders’ equity on June 30, 2021 were: Preference share capital, 30,000 shares, P3,000,000; Ordinary share capital, 100,000 shares, P1,000,000; Preference share premium, P1,200,000; Ordinary share premium, P8,000,000; and Retained earnings, P2,550,000. Dividends were paid at the end of the current fiscal year on the ordinary shares at P6 per share and on the preference shares at the preference rate. Net income for the year is P750,000.What amount should be reported as additional paid in capital on June 30, 2022?10,620,00010,600,0009,200,0002,620,000What amount should be reported as retained earnings on June 30, 2022? 3,300,0001,540,0001,560,0001,550,000 Please kindly show solution for two question. Durham Company had two classes of shares outstanding, 10% P100 par preference share capital andP10 par ordinary share capital. During the fiscal year ending June 30, 2022, the entity had the followingtransactions affecting shareholders' equity:Issue of preference sharesIssue of ordinary sharesRetirement of preference sharesPurchase of treasury ordinary sharesShare split, par value reduced to P5Reissue of treasury ordinary sharesNumber of Shares5,00020,0001,0005,0002 for 15,000Price per Share140701508052The balances of the accounts in the shareholders' equity on June 30, 2021 were: Preference sharecapital, 30,000 shares, P3,000,000; Ordinary share capital, 100,000 shares, P1,000,000; Preference sharepremium, P1,200,000; Ordinary share premium, P8,000,000; and Retained earnings, P2,550,000.Dividends were paid at the end of the current fiscal year on the ordinary shares at P6 per share and onthe preference shares at the preference rate. Net income for the year is P750,000.8. What amount should be reported as additional paid in capital on June 30, 2022?a. 10,620,000b. 10,600,000c.9,200,000d. 2,620,0009. What amount should be reported as retained earnings on June 30, 2022?a. 3,300,000b. 1,540,000c. 1,560,000d. 1,550,000

To determine the amounts to be reported as additional paid-in capital and Retained Earnings on June…

Durham Company had two classes of shares outstanding, 10% P100 par preference share capital and P10 par ordinary share capital. During the fiscal year ending June 30, 2022, the entity had the following transactions affecting shareholders' equity: Issue of preference shares Issue of ordinary shares Retirement of preference shares Purchase of treasury ordinary shares Share split, par value reduced to P5 Reissue of treasury ordinary shares Number of Shares 5,000 20,000 1,000 5,000 2 for 1 5,000 Price per Share 140 70 150 80 52 The balances of the accounts in the shareholders' equity on June 30, 2021 were: Preference share capital, 30,000 shares, P3,000,000; Ordinary share capital, 100,000 shares, P1,000,000; Preference share premium, P1,200,000; Ordinary share premium, P8,000,000; and Retained earnings, P2,550,000. Dividends were paid at the end of the current fiscal year on the ordinary shares at P6 per share and on the preference shares at the preference rate. Net income for the year is P750,000. 8. What amount should be reported as additional paid in capital on June 30, 2022? a. 10,620,000 b. 10,600,000 c. 9,200,000 d. 2,620,000 9. What amount should be reported as retained earnings on June 30, 2022? a. 3,300,000 b. 1,540,000 c. 1,560,000 d. 1,550,000

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

Problem 9P

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Durham Company had two classes of shares outstanding, 10% P100 par preference share capital and P10 par ordinary share capital. During the fiscal year ending June 30, 2022, the entity had the following transactions affecting shareholders’ equity:

	Number of Shares	Price per Share
Issue of preference shares	5,000	140
Issue of ordinary shares	20,000	70
Retirement of preference shares	1,000	150
Purchase of treasury ordinary shares	5,000	80
Share split , par value reduced to P5	2 for 1
Reissue of treasury ordinary shares	5,000	52

The balances of the accounts in the shareholders’ equity on June 30, 2021 were: Preference share capital, 30,000 shares, P3,000,000; Ordinary share capital, 100,000 shares, P1,000,000; Preference share premium, P1,200,000; Ordinary share premium, P8,000,000; and Retained earnings, P2,550,000. Dividends were paid at the end of the current fiscal year on the ordinary shares at P6 per share and on the preference shares at the preference rate. Net income for the year is P750,000.