The capital structure of Thor Company on December 31, 2019 follows:12% Preference share capital, P200 par, 15,000 shares issued and outstanding P3,000,000Ordinary share capital, P30 par, 250,000 shares issued and outstanding 7,500,000Share premium –preference 900,000Share premium –ordinary 750,000 Retained earnings 2,100,000 The following selected transactions relating to shareholders’ equity were noted in 2020:Purchased and retired 2,000 preference shares at P280 each.Purchased 30,000 of its own ordinary shares at P35 per share.Reissued 5,000 treasury shares at P38 each.Shareholders donated to the company 20,000 ordinary shares when the market price is P36 per share.One half of the donated shares were issued for P39 each.Profit for 2020 was P1,850,000.The board of directors declared and paid the regular annual dividend on the preference share and P1.50 per ordinary share dividend.How much is the total shareholders’ equity on December 31, 2020?A. P14,250,000 B. P14,435,500 C. P14,453,500 D. P14,500,000

Stockholders' equity, also known as shareholders' or owners' equity, is the amount of assets…

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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 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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The capital structure of Thor Company on December 31, 2019 follows:

12% Preference share capital, P200 par, 15,000 shares issued and outstanding P3,000,000

Ordinary share capital, P30 par, 250,000 shares issued and outstanding 7,500,000

Share premium –preference 900,000

Share premium –ordinary 750,000

Retained earnings 2,100,000

The following selected transactions relating to shareholders’ equity were noted in 2020:

Purchased and retired 2,000 preference shares at P280 each.
Purchased 30,000 of its own ordinary shares at P35 per share.
Reissued 5,000 treasury shares at P38 each.
Shareholders donated to the company 20,000 ordinary shares when the market price is P36 per share.
One half of the donated shares were issued for P39 each.
Profit for 2020 was P1,850,000.
The board of directors declared and paid the regular annual dividend on the preference share and P1.50 per ordinary share dividend.

How much is the total shareholders’ equity on December 31, 2020?

A. P14,250,000 B. P14,435,500 C. P14,453,500 D. P14,500,000

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