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GROUP WORK
The accounts from the shareholders' equity section of the balance sheet of Western Company
showed the following at December 31, 2020:
Western issued 475,000 shares of the P1 par value Ordinary share on January 1, 2020.
The company also is authorized to issue 500,000 shares of P5 par value, 6% preferenceshare.
Jan. 10 Issued an additional 90,000 shares of Ordinary share at P17 per share.
Apr. 1 Issued 100,000 shares of preferenceshare at P8 per share.
July 19 The board of directors authorized the appropriation of P295,000 of retained
earnings for the purchase of equipment.
Oct. 23 Sold an additional 60,000 shares of preferenceshare at P9 per share.
Dec. 31 Net income for the year was P1,200,000. The board of directors declared a
dividend of P623,000 to shareholders of record on January 15, 2022, to be paid on
February 1, 2022.
Prepare a statement of changes in shareholders' equity for 2021 using the information given
above.