How many are the ordinary shares outstanding after reflecting the foregoing transactions for the year 2019?How much is the total shareholder’s equity at December 31,2019? The shareholder's equity of ABC Company at December 31,2018 is presented below:12% Preference share capital, P 200 par, 20,000 shares issued and outstandingOrdinary share capital, P 30 par, 300,000 shares issued and outstandingP 4,000,0009,000,000Share premium – PreferenceAdditional paid in capital in excess of stated value – OrdinaryRetained earnings750,0001,000,0003,000,000The following selected transactions relating to shareholder's equity were noted in 2019:a.) Purchased and retired 2,000 preference shares at P 230 each.b.) Purchased 30,000 of its own ordinary shares at P 35 per share.c.) Reissued 5,000 treasury shares at P 40 each.d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share.e.) One half of the donated shares were issued for P 39 each.f.) Profit for 2019 was P 1,850,000.g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 perordinary share dividend.

The shareholder's equity is the claim of the shareholders on the business' assets. But the claim can…

The shareholder's equity of ABC Company at December 31,2018 is presented below: 12% Preference share capital, P 200 par, 20,000 shares issued and outstanding Ordinary share capital, P 30 par, 300,000 shares issued and outstanding Share premium – Preference Additional paid in capital in excess of stated value – Ordinary P 4,000,000 9,000,000 750,000 1,000,000 Retained earnings 3,000,000 The following selected transactions relating to shareholder's equity were noted in 2019: a.) Purchased and retired 2,000 preference shares at P 230 each. b.) Purchased 30,000 of its own ordinary shares at P 35 per share. c.) Reissued 5,000 treasury shares at P 40 each. d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share. e.) One half of the donated shares were issued for P 39 each. f.) Profit for 2019 was P 1,850,000. g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 per ordinary share dividend.

The shareholder's equity of ABC Company at December 31,2018 is presented below: 12% Preference share capital, P 200 par, 20,000 shares issued and outstanding Ordinary share capital, P 30 par, 300,000 shares issued and outstanding Share premium – Preference Additional paid in capital in excess of stated value – Ordinary P 4,000,000 9,000,000 750,000 1,000,000 Retained earnings 3,000,000 The following selected transactions relating to shareholder's equity were noted in 2019: a.) Purchased and retired 2,000 preference shares at P 230 each. b.) Purchased 30,000 of its own ordinary shares at P 35 per share. c.) Reissued 5,000 treasury shares at P 40 each. d.) Shareholders donated to the company 20,000 ordinary shares when the market price is P 36 per share. e.) One half of the donated shares were issued for P 39 each. f.) Profit for 2019 was P 1,850,000. g.) The board of directors declared and paid the regular annual dividend on the preference share and P 1.50 per ordinary share dividend.

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 81PSA

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