The shareholders’ equity section of Pottery Corporation’s statement of financial position as of December 31, 2019, is as follows: Ordinary shares, P10, par value; authorized, 2,000,000 shares; issued 400,000 shares P4,000,000 Share premium 1,700,000 Accumulated profits 6,000,000 Total P11,700,000 The following transactions occurred during 2020: Jan. 5 10,000 shares of authorized and unissed ordinary shares were sold P17 per share. The company incurred share issue cost at P1 per share. Jan. 16 Declared a cash dividends of P1 per share, payable February 15 to shareholders of record February 5. Feb. 20 Reacquired 50,000 shares as treasury shares at P20 per share. Feb. 25 20,000 shares of authorized and unissued ordinary shares were issued in exchange of an equipment having a fair market value of P500,000. The company incurred share issue costs at P20,000. Mar. 1 A 30% stock dividend was declared and issued. Market value of shares on this date was at P30. Apr. 1 A two-for-one split was carried out. Market value of shares on this date was at P18 per share. May 30 Reissued half of the treasury shares at P14 per share. July 1 A 15% stock dividend was declared and issued. Market value is currently at P20 per share. Aug. 1 A cash dividend of P.50 per share was declared payable September 1 to shareholders of record on August 21. Dec. 31 Adjusted net income for the year is at P2,150,000. Determine the balance of the Ordinary Shares.

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...

See similar textbooks

Related questions

Concept explainers

Question

The shareholders’ equity section of Pottery Corporation’s statement of financial position as of December 31, 2019, is as follows:

Ordinary shares, P10, par value; authorized, 2,000,000 shares; issued 400,000 shares	P4,000,000
Share premium	1,700,000
Accumulated profits	6,000,000
Total	P11,700,000

The following transactions occurred during 2020:

Jan. 5	10,000 shares of authorized and unissed ordinary shares were sold P17 per share. The company incurred share issue cost at P1 per share.
Jan. 16	Declared a cash dividends of P1 per share, payable February 15 to shareholders of record February 5.
Feb. 20	Reacquired 50,000 shares as treasury shares at P20 per share.
Feb. 25	20,000 shares of authorized and unissued ordinary shares were issued in exchange of an equipment having a fair market value of P500,000. The company incurred share issue costs at P20,000.
Mar. 1	A 30% stock dividend was declared and issued. Market value of shares on this date was at P30.
Apr. 1	A two-for-one split was carried out. Market value of shares on this date was at P18 per share.
May 30	Reissued half of the treasury shares at P14 per share.
July 1	A 15% stock dividend was declared and issued. Market value is currently at P20 per share.
Aug. 1	A cash dividend of P.50 per share was declared payable September 1 to shareholders of record on August 21.
Dec. 31	Adjusted net income for the year is at P2,150,000.

Determine the balance of the Ordinary Shares.

Expert Solution

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.