How much is the shareholder's equity at 12/31/2019? The shareholder's equity of ABC Company at December 31,2018 is presented below:P 4,000,00012% Preference share capital, P 200 par, 20,000 shares issued and outstandingOrdinary share capital, P 30 par, 300,000 shares issued and outstandingShare premium – PreferenceAdditional paid in capital in excess of stated value - OrdinaryRetained earnings9,000,000750,0001,000,0003,000,000The following selected transactions relating to shareholder's equity were noted in 2019:a.) Purchased and retired 2,000 preference shares at P 230 each.b.) Purchased 30,000 of its own ordinary shares at P 35 per share.c.) Reissued 5,000 treasury shares at P 40 each.d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share.e.) One half of the donated shares were issued for P 39 each.f.) Profit for 2019 was P 1,850,000.g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 perordinary share dividend.

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Accounting

How much is the shareholder's equity at 12/31/2019?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 81PSA

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