Based on the information presented above and the result of your audit, calculate the following:a. The adjusted share capital as of December 31, 2020.b. The total share premium as of Dec. 31, 2020c. The unappropriated retained earnings as of Dec. 31, 2020.d. The adjusted total equity on Dec. 31, 2020 The stockholders equity accounts of All In One Corporation after its initial year of operation in 2020shows the following:DateParticularsDebitCreditJan.1Issued 6,000 shares at par of P100 in exchange forreal property with a market value of P800,000600,000Jan.15Sold 8,000 shares at 120960,000Mar. 10Purchased 800 All In One shares at P150120,000May.15Loss on sale of Machinery40,000Jun. 10Sold 400 treasury shares68,000Cash dividends declared payable in Jan. 15, 2021Dec.3180,000Dec.31Profit for the year316,000Based on the information presented above and the result of your audit, calculate the following:a. The adjusted share capital as of December 31, 2020.b. The total share premium as of Dec. 31, 2020C. The unappropriated retained earnings as of Dec. 31, 2020.d. The adjusted total equity on Dec. 31, 2020

Computation of sale price of treasury shares Sale price of treasury share = Total Amount received…

The adjusted share capital as of December 31, 2020. b. The total share premium as of Dec. 31, 2020 c. The unappropriated retained earnings as of Dec. 31, 2020. d. The adjusted total equity on Dec. 31, 2020

The adjusted share capital as of December 31, 2020. b. The total share premium as of Dec. 31, 2020 c. The unappropriated retained earnings as of Dec. 31, 2020. d. The adjusted total equity on Dec. 31, 2020

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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Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
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