The Shareholders' Equity of M. Gangoso Corporation at Jan 1, 2019, appears below: 8% Preference shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding = P1,450,000 Share premium preference = P870,000 Ordinary shares, P100 par, 200,000 sha
The Shareholders' Equity of M. Gangoso Corporation at Jan 1, 2019, appears below:
8% Preference shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding = P1,450,000
Share premium preference = P870,000
Ordinary shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding = P4,000,000
Share Premium Ordinary = P2,400,000
During 2019, the following transactions occurred:
Jan. 10 - Issued 26,000 ordinary shares for P180 cash per share.
Jan. 23 - Purchased 6,000 ordinary shares for the treasury at P200 per share.
Mar. 2 - Shareholders donated 4,000 ordinary shares to the corporation.
Mar. 14 - Sold 1/2 of the treasury shares acquired last January 23 for P210 per shares.
Mar. 14 - Sold the donated shares at P210 per shares.
July 15 - Issued 3,200
Sept. 15 - Received subscription to 18,000 ordinary shares at P250 share.
Oct. 15 - Received cash payment from each subscriber for 40% of the ordinary shares subscription price.
Nov. 15 - Received the balance due on the Sept. 15 shares subscription in cash and issued the stock certificates.
Dec. 15 - Closed profit of P522,000 from the Income summary account to retained earnings.
Required:
1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter january 1 balances.
2. Prepare
3. Prepare the Dec. 31, 2019 shareholder's equity section of the
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