PROBLEM 28 (AICPA Adapted) Miraflores owned 10,000 shares in Maquiling Company acquired several years ago at P100 per share to be held as a long-term investment. Beginning in 2015, Miraflores received a dividend of P40 per share. Maquiling Company notifies the investor that a portion of this amount represented earnings and the balance as liquidating dividends. The allocation to be made as follows: Earned                   Dividend                                      Liquidating Dividend 2015                         -                                                            P40 2016                       P10                                                         P30 2017                       P15                                                         P25 2018                       P20                                                         P20 2019                       P25                                                         P15 Requirements: 1. Prepare journal entries on the books of the investor from 2015 to 2019.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.