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Problem #21 chareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding P1,450,000 Share Premium-Preference Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding Share Premium-Ordinary Retained Earnings 870,000 4,000,000 2,400,000 2,700,000 During 2019, the following transactions occurred: Issued 16,000 ordinary shares for P180 cash per share. Purchased 6,000 ordinary shares for the treasury at P200 per share. Shareholders donated 4,000 ordinary shares to the corporation. Sold one-half of the treasury shares acquired last Jan. 23 for P210 per Jan. 10 23 Mar. 2 14 share. Sold the donated shares at P210 per share. Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. 14 July 15 Received subscriptions to 18,000 ordinary shares at P250 per share. Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Received the balance due on the Sept. 15 shares subscriptions in cash Sep. 15 Oct. 15 Nov. 15 and issued the stock certificates. Closed profit of P522,000 from the Income Summary account to Retained Earnings. Dec. 31 Required: 1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter January 1 balances. 2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders' equity accounts. 3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financial position.

Problem #21 chareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding P1,450,000 Share Premium-Preference Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding Share Premium-Ordinary Retained Earnings 870,000 4,000,000 2,400,000 2,700,000 During 2019, the following transactions occurred: Issued 16,000 ordinary shares for P180 cash per share. Purchased 6,000 ordinary shares for the treasury at P200 per share. Shareholders donated 4,000 ordinary shares to the corporation. Sold one-half of the treasury shares acquired last Jan. 23 for P210 per Jan. 10 23 Mar. 2 14 share. Sold the donated shares at P210 per share. Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. 14 July 15 Received subscriptions to 18,000 ordinary shares at P250 per share. Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Received the balance due on the Sept. 15 shares subscriptions in cash Sep. 15 Oct. 15 Nov. 15 and issued the stock certificates. Closed profit of P522,000 from the Income Summary account to Retained Earnings. Dec. 31 Required: 1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter January 1 balances. 2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders' equity accounts. 3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financial position.

Cornerstones of Financial Accounting
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 69E: Stock Dividends Crystal Corporation has the following information regarding its common stock: S10...
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Problem #21 Shareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding P1,450,000 Share Premium-Preference 870,000 Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding Share Premium-Ordinary Retained Earnings 4,000,000 2,400,000 2,700,000 During 2019, the following transactions occurred: Issued 16,000 ordinary shares for P180 cash per share. Purchased 6,000 ordinary shares for the treasury at P200 per share. Shareholders donated 4,000 ordinary shares to the corporation. Sold one-half of the treasury shares acquired last Jan. 23 for P210 per Jan. 10 23 Mar. 2 14 share. Sold the donated shares at P210 per share. Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. 14 July 15 Received subscriptions to 18,000 ordinary shares at P250 per share. Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Received the balance due on the Sept. 15 shares subscriptions in cash and issued the stock certificates. Sep. 15 Oct. 15 Nov. 15 Closed profit of P522,000 from the Income Summary account to Retained Earnings. Dec. 31 Required: 1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter January 1 balances. 2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders' equity accounts. 3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financial position.
Transcribed Image Text:Problem #21 Shareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding P1,450,000 Share Premium-Preference 870,000 Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding Share Premium-Ordinary Retained Earnings 4,000,000 2,400,000 2,700,000 During 2019, the following transactions occurred: Issued 16,000 ordinary shares for P180 cash per share. Purchased 6,000 ordinary shares for the treasury at P200 per share. Shareholders donated 4,000 ordinary shares to the corporation. Sold one-half of the treasury shares acquired last Jan. 23 for P210 per Jan. 10 23 Mar. 2 14 share. Sold the donated shares at P210 per share. Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. 14 July 15 Received subscriptions to 18,000 ordinary shares at P250 per share. Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Received the balance due on the Sept. 15 shares subscriptions in cash and issued the stock certificates. Sep. 15 Oct. 15 Nov. 15 Closed profit of P522,000 from the Income Summary account to Retained Earnings. Dec. 31 Required: 1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter January 1 balances. 2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders' equity accounts. 3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financial position.
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