Shareholders' Equity Section Following is the shareholders' equity of Valdez Corporation on Jan. 1, 2018: P6,000,000 500,000 1,800,000 Ordinary Shares, P100 par Share Premium Retained Earnings Transactions during 2018 and other information relating to shareholders' equity accounts were as follows: 1. On Jan. 26, Valdez reacquired for cash 5,000 shares of its ordinary shares for P110 per share. 2. On April 4, Valdez sold for cash 3,000 shares of its treasury stock for P140 per share. 3. On June 1, Valdez declared a cash dividend of P20 per share, payable July 5, to shareholders of record on July 1. 4. On Nov. 1, Valdez declared a 2-for-1 split and changed the par value from P100 to P50. On Nov. 20, shares were issued for the share split. 5. On Dec. 5, 4,000 shares were issued in exchange for a second hand equipment. The equipment originally cost P400,000, was carried by the previous owner at a book value of P200,000 and was recently appraised at P260,000. 6. Profit for 2018 was P1,730,000. Required: 1. Prepare journal entries to record the transactions. 2. Prepare the shareholders' equity section of the statement of financial position on Dec. 31, 2018.

Shareholders' Equity Section Following is the shareholders' equity of Valdez Corporation on Jan. 1, 2018: P6,000,000 500,000 1,800,000 Ordinary Shares, P100 par Share Premium Retained Earnings Transactions during 2018 and other information relating to shareholders' equity accounts were as follows: 1. On Jan. 26, Valdez reacquired for cash 5,000 shares of its ordinary shares for P110 per share. 2. On April 4, Valdez sold for cash 3,000 shares of its treasury stock for P140 per share. 3. On June 1, Valdez declared a cash dividend of P20 per share, payable July 5, to shareholders of record on July 1. 4. On Nov. 1, Valdez declared a 2-for-1 split and changed the par value from P100 to P50. On Nov. 20, shares were issued for the share split. 5. On Dec. 5, 4,000 shares were issued in exchange for a second hand equipment. The equipment originally cost P400,000, was carried by the previous owner at a book value of P200,000 and was recently appraised at P260,000. 6. Profit for 2018 was P1,730,000. Required: 1. Prepare journal entries to record the transactions. 2. Prepare the shareholders' equity section of the statement of financial position on Dec. 31, 2018.

Name: Shareholders' Equity SectionFollowing is the shareholders' equity of
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Description: Shareholders' Equity SectionFollowing is the shareholders' equity of Valdez Corporation on Jan. 1, 2018:P6,000,000500,0001,800,000Ordinary Shares, P100 parShare PremiumRetained EarningsTransactions during 2018 and other information relating to share

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

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