SKIPPY Company reported the following amounts in the equity section of its December 31, 2019 Statement of Financial Position: Preference shares 8%, P100 par (10,000 shares authorized, 2,000 shares issued) 200,000 Ordinary shares - P5 par (100,000 shares authorized, 20,000 shares issued) Share premium 100,000 125,000 Retained earnings 450,000 Total shareholders' equity P 875,000 During 2020, SKIPPY took part in the following transactions concerning equity: • Paid the annual 2019 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31,2019. • Purchased 2,700 shares of its own outstanding ordinary shares for P40 per share. Reissued 700 treasury shares for land valued at P30,000. Issued 500 preference shares at P105 per share Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for P45 per share Issued the share dividend Declared the annual 2020 P8 per share dividend on preference shares and the P2 per share dividend on ordinary shares. These dividends are payable in 2021. SKIPPY reported net income of P330,000 for the year

SKIPPY Company reported the following amounts in the equity section of its December 31, 2019 Statement of Financial Position: Preference shares 8%, P100 par (10,000 shares authorized, 2,000 shares issued) 200,000 Ordinary shares - P5 par (100,000 shares authorized, 20,000 shares issued) Share premium 100,000 125,000 Retained earnings 450,000 Total shareholders' equity P 875,000 During 2020, SKIPPY took part in the following transactions concerning equity: • Paid the annual 2019 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31,2019. • Purchased 2,700 shares of its own outstanding ordinary shares for P40 per share. Reissued 700 treasury shares for land valued at P30,000. Issued 500 preference shares at P105 per share Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for P45 per share Issued the share dividend Declared the annual 2020 P8 per share dividend on preference shares and the P2 per share dividend on ordinary shares. These dividends are payable in 2021. SKIPPY reported net income of P330,000 for the year

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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