Sample Problem 3

Albatross Corporation
Statement of Changes in Shareholders' Equity
For the Year Ended December 31, 2011

Share Capital
Preference
Balances, January 1, 2011

7,400,000.00

Retained Earnings
Ordinary

8,500,000.00

Reserves

10,227,600.00

Issuance of 198,400 shares of P20 par 10% preference share

3,968,000.00

892,800.00

Subscribed Preference Share, 94,800 shares

1,896,000.00

549,840.00

Subscriptions Receivable-Preference

Unappropriated

10,585,700.00

Treasury Share

Appropriated

1,200,000.00

(At Cost)

(1,200,000.00)

4,860,800.00
2,445,840.00

(1,627,290.00)

Share Dividend Distributable-Preference, 58,820 shares

Total
36,713,300.00

(1,627,290.00)

1,176,400.00

205,870.00

Issuance of 487,500 shares of P10 par ordinary share

4,875,000.00

2,681,250.00

Subscribed Ordinary Share, 221,700 shares

2,217,000.00

775,950.00

Subscriptions Receivable-Ordinary

(1,382,270.00)

7,556,250.00
2,992,950.00

(1,511,990.00)

Share Dividend Distributable-Ordinary, 155,920 shares

(1,511,990.00)

1,559,200.00

467,760.00

Sale of donated shares

(2,026,960.00)

600,000.00

600,000.00

Net income for the period

8,500,000.00

8,500,000.00

Cash Dividend-Preference

(1,344,040.00)

(1,344,040.00)

Cash Dividend-Ordinary

(3,430,240.00)

Cash dividend declared and paid:

Reversal of appropriation for the cost of treasury shares

(3,430,240.00)

1,200,000.00

(1,200,000.00)

(1,075,000.00)

1,075,000.00

Current appropriations for:

Cost of treasury shares

Treasury Share:

Purchase of 100,000 preference shares at P21.50 per share

Sale of 75,000 preference shares at P18.50 per share

(200,000.00)

Sale of 25,000 preference shares at P25 per share

Balances, December 31, 2011

(150,000.00)

87,500.00

12,813,110.00

15,639,210.00

16,288,570.00

(2,150,000.00)

(2,150,000.00)

1,737,500.00

1,387,500.00

537,500.00

10,877,190.00

1,075,000.00

(1,075,000.00)

625,000.00
55,618,080.00