Jho Riza L.

Señeres

BSA 101A

07 Activity 4 – ARG

The following select accounts appear in the general ledger for Mac Corporation on December 31, 201F.

The subscriptions receivable is callable beyond one (1) year.

a. Prepare the Shareholders’ Equity section of the balance sheet in good form using the traditional
manner of presentation.

Shareholder’s Equity

Authorized Share Capital, P200 par value, 100,000 shares P 20,000,000

Less: Unissued Share Capital 5,000,000
Issued Share Capital P 15,000,000
Subscribed Share Capital (20,000 shares) 4,000,000
Additional Share Capital:
Share Premium P 200,000
Share Capital from Donation 350,000
Share Capital from Stock Dividend 47,500 597,500
Stock Dividends Distributable (4,750 shares) 950,000
Total Share Capital Contributed P 20,547,500
Retained Earnings:
Unappropriated 2,000,000
Appropriated for Treasury Shares 107,500
Appropriated for Sinking Fund 500,000 2,607,500
Revaluation Increment 50,000
Total P 23,205,000
Less: Treasury Shares (500 shares @ P215) (107,500)
TOTAL SHAREHOLDERS’ EQUITY P 23,097,500
b. Prepare the Shareholders’ Equity section of the balance sheet in good form using the manner of
presentation as recommended by the International Accounting Standards.

Shareholder’s Equity

Share Capital, 100,000 shares authorized, P 200 par, 75,000

P 15,000,000
shares issued of which 500 shares are in treasury shares
Subscribed Share Capital 4,000,000
Stock Dividends Distributable 950,000
Total Contributed Share Capital P 19,950,000
Add: Reserves
Share Premium P 200,000
Share Capital from Donation 350,000
Share Capital from Stock Dividend 47,500
Unappropriated 2,000,000
Appropriated for Treasury Shares 107,500
Appropriated for Sinking Fund 500,000
Revaluation Increment 50,000 1,255,000
Retained Earnings 2,000,000
Total P 23,205,000
Less: Treasury Shares (500 shares @ P215) (107,500)
TOTAL SHAREHOLDERS’ EQUITY P 23,097,500