‘Numbers §,6 and 7 (On December 31, 2018, an entity reported the following equity items: 8% cumulative preference shares (150,000 issued, P20 par) 3,000,000 (Ordinary share capita (2,000,000 issued, PS pat) 10,000,000, Share premium - preference 200,000 Share premium - ordinary 27,000,000 Reuined earnings 4,500,000 ‘The following transactions affected equity during 2019: Jan, 1 30,000 preference shares issued at P22 per share ‘Apc. 150,000 ordinary shares issued atP20 per share June 1 _2-for- share split onthe ordinary shares July 1 30,000 ordinary treasury shares were reacquired at P10 per share Oct. 1 10,000 treasury shares were reissued at PLT per share a Dec.31 Net income for the year is P9,000,000. The latest preference dividend was paid during 2017. 5. What emount should be reported as total shareholders’ equity on December 31,2019? 8 $5,170,000 . 44°700,000 $4,882,000 55,375,000 6. What amount should be reported as basic earnings per share for 20197 2 220 b 222 © 214 207 ‘Whats the book value per preference share on December 31, 20192 20.00 b. 2295 © 2320 4 21.60 Number 8 ‘An entity was reporting losses for several years. The board of ditectors and shareholders approved a quasi-eorganization. The reorganization included reducing inventory and land by P300,000 and 'P800,000 respectively. Immediately before the restatement, the entity had the following balances ‘Share capital (320,000 issued shares, PLO par) 3,200,000 ‘Share premium '800,000 Reuwined earings (deficit) (400,000) ‘What is the reduction in the total par value ofthe shares to fully eliminate the deficit? 400,000 . ». 700,000 © 1,500,000 a 0