Laurente Corporation

Statement of Financial Position

December 31, 2019
Shareholders' Equity

Preference Shares, P50 par, 100,000 shares authorized, issued and outstanding ₱ 5,000,000
Ordinary Shares, P1 par, 5,000,000 shares authorized, 2,300,000 shares issued,
2,300,000 shares outstanding 2,300,000
Share Premium-Ordinary 17,000,000
Retained Earnings 18,600,000
Total Shareholders' Equity and Retained Earnings ₱ 42,900,000
Treasury Stock, 68,000 shares, at cost - 748,000
Total Shareholders' Equity ₱ 42,152,000

Required:
How many additional shares of preference shares can the corporation is issue? 0
Issued Preference Shares 100,000
Multiply by: Par Value per Share 50
Preference Shares Capital 5,000,000

How many additional shares of ordinary shares? 2,700,000

Authorized Ordinary Shares 5,000,000
Less: Outstanding Ordinary Shares 2,300,000
Unissued Ordinary Shares 2,700,000
 Buenaflor Technologies
Statement of Financial Position
December 31, 2018
Shareholders' Equity

5% Cumulative Preference Shares, P100 par, 50,000 shares authorized, 20,000 shares issued ₱ 2,000,000
Ordinary Shares, P5 par; 100,000 shares authorized; 25,000 shares issued 125,000
Share Premium-Ordinary 750,000
Retained Earnings 650,000

Required:
How many preference shares were issued? 20,000
Preference Shares Capital 2,000,000
Divide by: Par Value per Share 100
Issued Preference Shares 20,000

What was the total issue price of the preference shares? ₱ 2,000,000
Issued Preference Shares 20,000
Multiplied by: Par Value per Share 100
Preference Shares Capital 2,000,000

What amount should be recorded in the ordinary shares account? ₱ 125,000

Issued Ordinary Shares 25,000
Multiplied by: Par Value per Share 5
Ordinary Shares Capital 125,000

What was the total issue price per share of the ordinary shares? ₱ 35
Ordinary Shares Capital 125,000
Share Premium-Ordinary 750,000
Total Ordinary Shares 875,000
Divide by: Issued Ordinary Shares 25,000
Issued Ordinary Shares Price per Share 35

What is the amount of required preference dividends? ₱ 100,000

Preference Shares Issued 2,000,000
Multiply by: Cumulative Preference Shares 5%
Preference Shares Dividends 100,000

What is the amount of total shareholder's equity? ₱ 3,525,000

Preference Shares Capital 2,000,000
Ordinary Shares Capital 125,000
Share Premium-Ordinary 750,000
Retained Earnings 650,000
Shareholders' Equity 3,525,000
 Balocating Corporation
Statement of Financial Position
December 31, 2020
Shareholders' Equity

8% Preference Shares, P100 par, 30,000 shares authorized, 10,000 shares issued ₱ 1,000,000
Ordinary Shares, no-par, stated value of P5, 200,000 shares authorized 750,000
Share Premium-Preference 130,000
Share Premium-Ordinary 3,300,000
Retained Earnings 1,400,000
Total Shareholders' Equity ₱ 6,580,000

Required:
What is the amount of the annual dividend on the preference shares? ₱ 80,000
Preference Shares Capital 1,000,000
Multiply by: Dividends Rate 8%
Preference Shares Dividends 80,000

How many ordinary shares have been issued? 150,000

Ordinary Shares Capital 750,000
Divided by: Stated Value per Share 5
Issued Ordinary Shares 150,000

What was the average price paid by the shareholders for the preference shares? ₱ 113
Preference Shares Capital 1,000,000
Share Premium-Preference 130,000
Preference Shares Total Capital 1,130,000
Divide by: Issued Preference Shares 10,000
Preference Shares Average Price 113

What was the average price paid by the shareholders for the ordinary shares? ₱ 27
Ordinary Shares Capital 750,000
Share Premium-Ordinary 3,300,000
Ordinary Shares Total Capital 4,050,000
Divide by: Issued Ordinary Shares 150,000
Ordinary Shares Average Price 27

How many ordinary shares are currently outstanding? 150,000

Ordinary Shares Capital 750,000
Divided by: Stated Value per Share 5
Outstanding Ordinary Shares 150,000

If the total dividends of P287,200 were paid to shareholders in the current year,
how much was paid to the ordinary shareholders assuming that no preference
dividends are in arrears? ₱ 207,200
Total Dividends 287,200
Less: Preference Shares Dividends 80,000
Ordinary Shares Dividends 207,200
Required:
1. Determine the following: 2. Prepare a classified statement of fi
How many ordinary shares are outstanding? 6,052
Ordinary Shares Capital 1,513,000 Sta
Divided by: Par Value per Share 250
Outstanding Ordinary Share 6,052
Currents Assets
How many ordinary shares are subscribed? 320
Subscribed Ordinary Shares Capital 80,000
Divided by: Par Value per Share 250
Subscribed Ordinary Share 320

How many preference shares are outstanding? 500

Preference Shares Capital 250,000 Non Current Assets
Divided by: Par Value per Share 500
Outstanding Preference Share 500

How many preference shares are subscribed? 200 Total Assets

Subscribed Preference Shares Capital 100,000 Liabil
Divided by: Par Value per Share 500 Current Liability
Subscribed Preference Share 200

At what average price has ordinary shares been

subscribed or issued? ₱ 259.42
Ordinary Shares Capital 1,513,000
Subscribed Ordinary Shares Capital 80,000 Shareholder's Equity
Share Premium-Ordinary Shares 60,000
Total Ordinary Shares Capital 1,653,000
Divide by: Subscribed and Outstanding Shares 6,372
Ordinary Shares Average Price 259

Assume that no dividends are paid in the first year

of the corporation's existence. What are the rights
of the preference shareholders? None

If a shareholder has noncumulative or

nonparticipating shares, he/she has no rights to
collect the unpaid dividends.

Assuming that all of the Share Premium-Ordinary

was applicable to the ordinary shares that have
been subscribed but not yet issued, what was the
subsciption price per share of the ordinary shares
subscribed? ₱ 437.50
Share Premium-Ordinary Shares 60,000 Total Liability and Shareholder's Equi
Subscribed Ordinary Shares Capital 80,000
Total Share Premium and Subscribed Ordinary
Share Capital 140,000
Subscribed Ordinary Share 320
Subscription Price Per Share 438

Assuming that the board of directors declared no

dividends in 2018, what amount would have to be
paid the preference shareholders in 2019 before
any dividend could be paid to the ordinary
shareholders? None
The information is insufficient. There is no definite
amount for Retained Earnings.
2. Prepare a classified statement of financial position for the corporation immediately after formation.
Ilano Corporation
Statement of Financial Position
August 1, 2018
Assets
Currents Assets
Cash ₱ 160,000
Accounts Receivable ₱ 220,000
Allowance for Uncollectible Accounts 20,000 200,000
Merchandise Inventory 1,000,000
Organization Expense 30,000
Total Current Assets ₱ 1,390,000
Non Current Assets
Building ₱ 1,000,000
Furniture and Fixtures 250,000
Total Non Current Assets 1,250,000
Total Assets ₱ 2,640,000
Liabilitied and Shareholders' Equity
Current Liability
Accounts Payable 400,000
Notes Payable Short-Term 250,000

Accrued Expenses 50,000

Total Liability ₱ 700,000
Shareholder's Equity
Ordinary Shares ₱ 1,513,000
Share Premium-Ordinary 60,000
Subscribed Ordinary Shares ₱ 80,000
Subscription Receivable-Ordinary 41,000 39,000
Preference Shares 250,000

Share Premium-Preference 30,000

Subscribed Preference Shares ₱ 100,000

Subscription Receivable-Preference 52,000 48,000

Total Shareholder's Equity ₱ 1,940,000

Total Liability and Shareholder's Equity ₱ 2,640,000
 Cash
Jan-05 100,000 28,000 Feb-15
Jan-09 56,000
Jan-15 60,000
Feb-01 60,000
Mar-01 60,000
Mar-20 8,750
Sep-15 6,750
323,500

Machine
May-30 75,000

Ordinary Share
40,000 Jan-05
60,000 Mar-01
100,000

Subscibed Ordinary Share

Mar-01 60,000 60,000 Jan-15

Subscription Receivable-Ordinary
Jan-15 180,000 60,000 Jan-15
60,000 Feb-01
60,000 Mar-01

Share Premium-Ordinary
60,000 Jan-05
120,000 Jan-15
180,000

Preference Share
50,000 Jan-09
10,000 Jan-31
60,000

Share Premium-Preference
6,000 Jan-09
1,200 Jan-31
7,200

Treasury Stock
Feb-15 28,000 7,000 Mar-20
7,000 Sep-15
14,000

Share Premium-Treasury
Sep-15 250 1,750 Mar-20
 1,500

Donated Capital
75,000 May-30

Retained Earnings
36,400 Dec-31

Legal Expense
Jan-31 11,200
 Galvez Corporation
Partial Statement of Financial Position
Dated as of September 30, 2018
Shareholders' Equity
Ordinary Share 100,000
Share Premium-Ordinary 180,000
Preference Share 60,000
Share Premium-Preference 7,200
Treasury Stock - 14,000
Share Premium-Treasury 1,500
Donated Capital 75,000
Retained Earnings 36,400
Total Shareholders' Equity ₱ 446,100