Problem #26 P344

Required 1:

Unissued Ordinary Shares Authorized Ordinary Shares

Jan. 3 500,000.00 500,000.00

Cash Ordinary Shares

Jan. 5 100,000.00 40,000.00
Jan. 7 56,000.00 60,000.00
Jan. 15 60,000.00
Feb. 1 60,000.00 100,000.00
28,000.00 Feb. 15
Mar. 1 60,000.00
Mar. 20 8,750.00
Sep. 15 6,750.00 Preference Shares
50,000.00
323,500.00 10,000.00

60,000.00

Legal Expenses
Jan. 31 11,200.00 Feb. 15 Treasury Shares
28,000.00
11,200.00 7,000.00
7,000.00

14,000.00

May. 30 Machinery Donated Income

75,000.00 75,000.00
 Unissued Preference Shares
Jan. 3 Jan. 3 1,500,000.00

Share Premium- Ordinary Shares

Jan. 5 60,000.00 Jan. 5 Jan. 15
Mar. 1 120,000.00 Jan. 15

180,000.00

Share Premium- Preference Shares

Jan. 7 6,000.00 Jan. 7
Jan. 31 1,200.00 Jan. 31 Mar. 1

7,200.00

Share Premium- Treasury Shares

1,750.00 Mar. 20
Mar. 20
Sep. 15 1,750.00

Retained Earnings
May. 30 Sep. 15 250.00
Authorized Preference Shares
1,500,000.00 Jan. 3

Subscription Receivable
180,000.00 60,000.00 Jan. 15
60,000.00 Feb. 1
60,000.00 Mar. 1

Subscribed Ordinary Shares

60,000.00 Jan. 15
60,000.00

-
Required 2:
Galvez Corporation
Statement of Shareholders' Equity
Dec. 31, 2015

Authorized Ordinary Shares 500,000.00

Less: Unissued Ordinary Shares (400,000.00) 100,000.00
Authorized Preference Shares 1,500,000.00
Less: Unissued Preference Shares (1,440,000.00) 60,000.00
Issued and Outstanding Ordinary Shares and Preference Shares 160,000.00
Add:
Share Premium- Ordinary Shares 180,000.00
Share Premium- Preference Shares 7,200.00
Share Premium- Treasury Shares 1,750.00 188,950.00

Less: Treasury Shares (14,000.00)

Total Share Capital 334,950.00
Add:
Retained Earnings 36,650.00
Donated Capital 75,000.00
Total Shareholders' Equity 446,600.00
Problem #26 P413
Required 1:

Unissued Ordinary Shares 250,000.00

Authorized Ordinary Shares 250,000.00

Unissued Preference Shares 2,000,000.00

Authorized Preference Shares 2,000,000.00

a. Cash 250,000.00
Ordinary Shares 50,000.00
Share Premium- Ordinary Shares 200,000.00

Cash 110,000.00
Preference Shares 100,000.00
Share Premium- Preference Shares 10,000.00

b. Book Collection 60,000.00

Ordinary Shares 10,000.00
Share Premium- Ordinary Shares 50,000.00

c. Treasury Shares 10,000.00

Cash 10,000.00

d. Retained Earnings 19,500.00

Cash Dividends Payable 19,500.00

e. Cash Dividends Payable 19,500.00

Cash 19,500.00

f. Retained Earnings 13,000.00

Share Distributable-Preference Shares 10,000.00
Share Premium- Preference Shares 3,000.00

Share Distributable- Preference Shares 10,000.00

Preference Shares 10,000.00

g. Income Summary 200,000.00

Retained Earnings 200,000.00
1,000 shares x 10%= 100shares x P130= P13,000
1,000 shares x 10%= 100shares x P100 par= P10,000
P13,000 - P10,000= P3,000
Required 2:
T. Galang Corporation
Statement of Shareholders' Equity
Dec. 31, 2016

Authorized Ordinary Shares 250,000.00

Less: Unissued Ordinary Shares (190,000.00)
Authorized Preference Shares 2,000,000.00
Less: Unissued Preference Shares (1,890,000.00)
Issued and Outstanding Ordinary Shares and Preference Shares
Add:
Share Premium- Ordinary Shares 250,000.00
Share Premium- Preference Shares 13,000.00

Less: Treasury Shares

Total Share Capital
Add: Retained Earnings
Total Shareholders' Equity
 60,000.00

110,000.00
170,000.00

263,000.00

(10,000.00)
423,000.00
167,500.00 (200,000 - (19,500 + 13,000))
590,500.00
Required 3:

Book Value per Share= (Shareholders' Equity- Preference Shares) / Total Outstanding Ordinary Shares
Book Value per Share= (P590,500- P110,000) / P60,000
Book Value per Share= P8.00
Problem #31 P418
Required 1:

a. Memorandum Entry

b. Memorandum Entry

c. Building 96,000.00
Ordinary Shares 72,000.00
Share Premium- Ordinary Shares 24,000.00

d. Treasury Shares 64,000.00

Cash 64,000.00

e. Cash 2,000,000.00
Preference Share 2,000,000.00

f. Cash 35,000.00
Retained Earnings 5,000.00
Treasury Shares 40,000.00

g. Retained Earnings 221,800.00

Cash Dividends Payable- Preference Shares 120,000.00
Cash Dividends Payable- Ordinary Shares 101,800.00

h. No Entry

i. Cash Dividends Payable- Preference Shares 120,000.00

Cash Dividends Payable- Ordinary Shares 101,800.00
Cash

j. Retained Earnings 509,000.00

Ordinary Shares 152,700.00
Share Distributable- Ordinary Shares 356,300.00

k. Income Summary 340,000.00

Retained Earnings 340,000.00
 Required 2:
Rodriguez Corporation
Statement of Retained Earnings
For the Year Ended June 30, 2015

Retained Earnings, Beginning 970,000.00

Less:
Cash Dividends Payable- Ordinary Shares (101,800.00)
Cash Dividends Payable- Preference Shares (120,000.00)
Less: Share Dividends (509,000.00)
Add: Profit 340,000.00
Retained Earnings 579,200.00

(64,000 / 8,000)

(20,000 shares x P6)

Required 3:
Rodriguez Corporation
Statement of Shareholders' Equity
30-Jun-15

Ordinary Share- P3 par value, 2,000,000

Authorized, 512,000 Issued and 509,000
Outstanding 1,536,000.00
6% Preference Share- P100, 50,000 Authorized,
20,000 Issued and Outstanding 2,000,000.00 3,536,000.00
Add:
Share Premium 1,231,300.00
Ordinary Share Dividend Distributable 152,700.00
Retained Earnings 579,200.00
Less:
Treasury Shares (24,000.00)
Total Shareholders' Equity 5,475,200.00