The statement of changes in equity of Coco Co. shows the following balances as of January 1, 2021: Ordinary share capital (5 par, 250,000 shares authorized, 137,500 issued and outstanding) $687,500 Share premium 275,000 Unappropriated retained earnings 667,500 Appropriated retained earnings 250,000 Total equity $ 1,880,000 The corporation had the following equity transactions for during 2021: Jan 15 Completed the building renovation for which 250,000 of retained earnings had been restricted. Paid the contractor $242,500, all of which is capitalized. Mar 3 Issued 50,000 additional ordinary shares for $8.00 per share. May 18 Declared a dividend of $1.50 per share to be paid on July 31, 2021, to shareholders of record on June 30, 2021. June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is $200,000, and retained earnings are to be restricted for that amount July 31 Paid the cash dividend. Dec 31 Declared a property dividend to be paid on January 10, 2022, to shareholders of record on January 5, 2022. The dividend is to consist of equipment with a carrying value of $150,000 The equipment's fair value at December 31, 2021 is $157,500. Dec 31 Reported $442,500 of net income on December 31, 2021 income statement. Required: Compute for the total equity to shown in the 2021 Statement of Changes in Equity and subsequently carried forward to the Statement of Financial Position.
The statement of changes in equity of Coco Co. shows the following balances as of January 1, 2021:
Ordinary share capital (5 par, 250,000 shares authorized, 137,500 issued and outstanding) $687,500
Share premium 275,000
Unappropriated
Appropriated retained earnings 250,000
Total equity $ 1,880,000
The corporation had the following equity transactions for during 2021:
Jan 15 Completed the building renovation for which 250,000 of retained earnings had been restricted. Paid the contractor $242,500, all of which is capitalized.
Mar 3 Issued 50,000 additional ordinary shares for $8.00 per share. May 18 Declared a dividend of $1.50 per share to be paid on July 31, 2021, to shareholders of record on June 30, 2021.
June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is $200,000, and retained earnings are to be restricted for that amount
July 31 Paid the cash dividend.
Dec 31 Declared a property dividend to be paid on January 10, 2022, to shareholders of record on January 5, 2022. The dividend is to consist of equipment with a carrying value of $150,000 The equipment's fair value at December 31, 2021 is $157,500.
Dec 31 Reported $442,500 of net income on December 31, 2021 income statement.
Required: Compute for the total equity to shown in the 2021 Statement of Changes in Equity and subsequently carried forward to the
Step by step
Solved in 2 steps
