Name: DE VERA, KYLE C.

Crs. Yr.&Sec.: BSA-3A

AP2 ASSIGNMENT 3: SHAREHOLDERS EQUITY

1.) The balance in the ordinary share capital account at

December 31, 2018 should be

Balance, January 1, 2018 687,500

March 3 250,000
Balance, December 31, 2018 937,500 C

2.) The balance in the share premium account at

December 31, 2018, should be

Balance, January 1, 2018 275,000

March 3 150,000
Balance, December 31, 2018 425,000 A

3.) The balance in the unappropriated retained earnings

account at December 31, 2018, should be

Balance, January 1, 2018 667,500

January 15 250,000
May 18 (281,250)
June 19 (200,000)
December 31 (157,500)
December 31 442,500
Balance, December 31, 2018 721,250 D

4.) The total shareholders' equity at December 31, 2018,

should be

Ordinary share capital 937,500

Share Premium 425,000
Unappropriated retained earnings 721,250
Appropriated retained
earnings (250k-250k+200) 200,000
Total 2,283,750 B

5.) C
6.) A
7.) B
8.) A
 9.) A
10.) C
 JOURNAL ENTRIES

Jan. 15 Appropriated retained earnings 250,000

Unappropriated retained earnings

Mar. 3 Cash ( 8 * 50k) 400,000

Ordinary Share Capital ( 5 * 50k)
Share Premium

May. 18 Unappropriated retained earnings 281,250

Dividends payable [ 1.50*(137,500+50,000)]

June 19 Unappropriated retained earnings 200,000

Appropriated retained earnings

July 31 Dividends Payable 281,250

Cash

Dec. 31 Unappropriated retained earnings 157,500

Property dividends payable

Dec. 31 Income Summary 442,500

Unappropriated retained earnings
250,000

250,000
150,000

281,250

200,000

281,250

157,500

442,500