Problem #7

Ceradoy Corporation

1. Total authorized ordinary shares 20,000 x ₱ 15 =

2. Total unissued ordinary shares 2,000 x ₱ 15 =
3. Total issued ordinary shares 18,000 x ₱ 15 =
4. Ordinary shares subscribed =
5. Total Shareholders' Equity
Ordinary Shares ₱ 270,000
Share Premium 95,000
Subscribed Ordinary Shares ₱ 27,000
Less: Subscription Receivable 17,000 10,000
Retained Earnings 200,000
Total ₱ 575,000
Less: Treasury Stock 25,000
Shareholders' Equity ₱ 550,000

6. Number of Shares Issued =

7. Number of shares subscribed ₱ 27,000 / ₱ 15 =
8. Number of shares in treasury =
9. Number of outstanding shares 18,000 - 1,000 =
 Problem #11
1. A 20% share dividends is declared on ordinary shares

₱ 300,000 Retained Earnings 1,000,000

₱ 30,000 Shares Distributable
₱ 270,000 To record declaration of 20% share dividend
₱ 27,000
Shares Distributable 1,000,000
Ordinary Shares
To record issuance of share dividends

2. A 10% share dividends is declared on ordinary shares

Retained Earnings 750,000

Shares Distributable
Share Premium
18,000 To record declaration of 10% share dividend
1,800
1,000 Shares Distributable 500,000
17,000 Ordinary Shares
To record issuance of share dividends
 Problem #12
C. Laguna Corporation
General Journal
December 31, 2019
1,000,000 Date Debit
2019
June 7 Retained Earnings 960,000
Shares Distributable
1,000,000 Share Premium

28 Shares Distributable 400,000

Ordinary Shares

Dec. 5 Retained Earnings 880,000

Cash Dividends Payable
500,000
250,000 26 Cash Dividends Payable 880,000
Cash

31 Revenue 2,380,000
500,000 Income Summary

Income Summary 2,380,000

Retained Earnings

Retained Earnings 1,840,000

Share Dividends
Cash Dividends

Problem #13
L. Generales Corporation
General Journal
December 31, 2017
Date Debit
2017
Jan. 8 Cash 260,000
Ordinary Shares
Share Premium - Ordinary Shares

March 12 Cash 108,000

Treasury Stock
Share Premium - Treasury

June 30 Share Dividends Declared 63,000

Shares Distributable
Share Premium - Ordinary Shares

July 10 Shares Distributable 21,000

 Ordinary Shares

Oct. 7 Treasury Stock 30,800

Cash

Dec. 18 Cash Dividend Declared 72,000

Cash Dividends Payable

31 Revenue 183,000
Income Summary

Income Summary 183,000

Retained Earnings

Retained Earnings 135,000

Cash Dividends
Share Dividends
 C. Laguna Corporation
Statement of Retained Earnings
For the Year Ended December 31, 2019
Credit Balance, 1/1/2019, as reported
Add: Profit
Total
400,000 Less: Share Dividends Declared ₱ 960,000
560,000 Cash Dividends Declared 880,000
Total Retained Earnings

400,000

880,000

880,000

2,380,000

2,380,000

960,000
880,000

Shareholders' Equity

Credit Share Capital

Ordinary Shares - ₱10 par, 100,000 share
authorized, 37,100 issued
100,000 Share Premium - Ordinary ₱ 327,000
160,000 Share Premium - Treasury 20,000
Total Share Capital
Retained Earnings
100,000 Unappropriated ₱ 215,200
8,000 Appropriated for Treasury Stocks 90,000
Total Share Capital and Balance Earnings
Less: Treasury Shares - Ordinary
21,000 Total Shareholders Equity
42,000
 21,000

30,800

72,000

183,000

183,000

72,000
63,000
s
2019
₱ 2,850,000
2,380,000
₱ 5,230,000

1,840,000
₱ 3,390,000

L. Generales Corpora
Statemenf of Changes in Shareh
For the Year Ened Decembe
Ordinary Share Premium
₱ 371,000 Shares, ₱10 par - Ordinary
Balance, Jan. 1 ₱ 250,000 ₱ 325,000
Profit
347,000 Cash Dividends on Ordinary
₱ 718,000 Issuance of Ordinary 10,000 shares 100,000 160,000
6% Share Dividend on Ordinary, 1,260 shares 21,000 42,000
Purchase of Treasury Stock
305,200 Appropriation for Treasury Stock
₱ 1,023,200 ₱ 371,000 ₱ 527,000
100,000
₱ 923,200
 L. Generales Corporation
menf of Changes in Shareholders' Equity
or the Year Ened December 31, 2017
Share Premium Unappropriated Appropriated Treasury
- Treasury Retained Earnings Retained Earnings Ordinary Shares Total
₱ 12,000 ₱ 98,000 ₱ 100,000 ₱ 100,000 ₱ 885,000
183,000 183,000
- 72,000 - 72,000
260,000
- 63,000 -
- 100,000 - 100,000
8,000 - 30,800 30,800 8,000
₱ 20,000 ₱ 115,200 ₱ 130,800 ₱ - ₱ 1,164,000