GOOD AFTERNOON!

Good evening po, Same po ba ang paid up capital sa APIC or Additional paid in capital? Thank you po

No.
5

if meron pong computations for legal capital and share capital, meron din po bang other computations for other capitals? like paid-up capita, s

Authorized Capital
Subscribed Capital
1,000,000 P1
Receivable
400,000 Share Capital
300,000

Week 1 Week 2 Week 3

Mon Mon Mon
Friday Friday Fri - Quiz
Sat Sat Sat - Midterm Exams

Fri/Sat TS/RI/SP/RE
Recorded Share Based Compensation/Earnings per Share
Monday Sample problems/Questions/Techniques

Treasury Shares Entity's own shares

Company A issues shares to stockholder 1

buy back not cancelled
Share of stock ng Company A
held by Company A

Unrestricted Retained Earnings Earnings/Income

not set aside for a specific/particular purpose

2021 2,000,000.00 Unrestricted Retained Earnings

1,000,000.00 Restricted Retained Earnings
1,000,000.00 Unrestricted Retained Earnings

Cost Method 2000 shares

Cash payment 100 par
CA 150 per share Cost
 TS 300,000.00
Cash 300,000.00

Reissuance
Cash 300,000.00
TS 300,000.00

Reissued 200 per share

Cash 400,000.00
TS 300,000.00
Share Premium 100,000.00

5,000 shares P10 par P25/share

TS 125,000.00
Cash 125,000.00

3000 shares were reissued 30 per share

Cash 90,000.00
TS 75,000.00
SP - TS 15,000.00

Additional, 2021 - 500,000 RE

2000 shares were reissued at 15/share
Cash 30,000.00
1st SP-TS 15,000.00
2nd RE 5,000.00
TS 50,000.00

Retirement of TS
Dr Share Capital (Par or stated)
Cr TS (At Cost)

Par>Cost Gain SP - TS
Par<Cost Loss 1st SP - Original Issuance
2nd SP - TS
3rd Retained Earnings

Ord Share Cap 50,000 (100 Par) 5,000,000.00

SP - OI 500,000.00 10.00
SP - TS 100,000.00 20.00
RE 1,000,000.00
TS - 5000 @ Cost 750,000.00 150.00

Retirement TS - 3,000 50,000.00

What is the entry to retire the 3,000 treasury shares?

Ord Share Capital 300,000.00

SP - OI 30,000.00
SP - TS 60,000.00
RE 60,000.00
TS 450,000.00

Donated Capital
Ord Share Cap 50,000 (100 Par) 5,000,000.00
10,000 150.00

Memo entry

Cash 1,500,000.00
Donated Capital 1,500,000.00

OSC 1,000,000.00
DC 1,000,000.00

Recapitalization
Shareholdrs Shres Cancelled New sets of shares

Par to No par
No par to par
Reduction of Par Value
Reduction of Stated Value
Split up
Split down

Ord Share Capital 100 par 50,000 5,000,000.00

SP 500,000.00
RE 2,500,000.00

No Par value 150

Ord Share Capital 5,000,000.00

SP 500,000.00
RE 2,000,000.00
Ord Share Capital 7,500,000.00

100
80

OSC 20.00
 SP - recap 20.00

Share split
up Number of Shares
down

10000 100 2 for 1

50000 20 5 for 1

memo

10000 100
5000 200

Rights issue Stock Right

Share warrants

10,000.00 2,000.00 12,000.00

Evan 3,500.00 700.00 4,200.00
Others 6,500.00 6,500.00

35% 35%

Right of preemption Rights issue

Issuance of rights No entry

Exercise of Rights 1,000,000.00
Cash 1,200,000.00
SC 1,000,000.00
SP 200,000.00

OSC/ Preference shares

PS 20,000 100 par 3,250,000.00 20000 warrants

10,000 OS 60 50 par
PS ex warrant 120.00
Warrant 10.00

Market value PS 2,400,000.00 3,000,000.00

Warrants 200,000.00 250,000.00
2,600,000.00 3,250,000.00

Cash 3,250,000.00
PSC 2,000,000.00 PSC @ par
SP - PS 1,000,000.00 Share premium
Share warrants outstanding 250,000.00 SP
Cash 600,000.00
Share warrants outst 250,000.00
OSC 500,000.00
SP - OS 350,000.00

PS 120.00
Warrant ???

PS 2,400,000.00
Warrants 850,000.00

Cash 3,250,000.00
PSC 2,000,000.00
SP - PS 400,000.00
Share warrants outstanding 850,000.00

Retained Earnings
or other capitals? like paid-up capita, subscription capital and other concepts po for sharehold equity?

a specific/particular purpose
Shares
Share CapitaPar Value Share premium
TS Cost

5,000 sharesP10 par P25/share

TS 125,000.00
Cash 125,000.00

3000 shares were reissued 30 per share

Cash 90,000.00
TS 75,000.00
SP - TS 15,000.00
 2,000,000.00
Share premium 1,000,000.00
 Retained Earnings
URE free - can be declared as dividends
ARE restricted
Deficit negative deduction from sharesholders' equity

DIVIDENDS Shareholders
Earnings
Capital
Approval By:
Dividends BOD Cash/Property Dividends
BOD/Stockholders Stock Dividends

Date of Declaration //////

Date of Record
Date of Payment

Cash Dividends
Nov 30 - 20 pesos per share 50,000 OS - 5 pesos
Payable april 30 .25 cent
Dec 31,
12,500.00
20,000 100 par

30-Nov RE 400,000.00
Dividends Payable 400,000.00

31-Dec No Entry

30-Apr Dividends Payable 400,000.00

Cash 400,000.00

Property Dividends Non-cash assets

1 Measurement of the Property Dividend Payable
IFRIC 17
Fair Value of asset
end of reporting peri CA dividend payable
date of settlement

Retained earnings

2 Measurement of the noncash asset distributed

Lower Carrying Amount 1,000,000.00
FV - cost to distribute IL 300,000.00
 CA - books 700,000.00
FV-COD 560,000.00
Impairment Loss 140,000.00

RE 1,500,000.00
DP 1,500,000.00

RE 300,000.00
DP 300,000.00

RE 100,000.00
DP 100,000.00

DP 1,900,000.00
Investment 1,000,000.00
Gain on distribution of property dividend 900,000.00

Dividend Payable 1,900,000.00

Investment 1,000,000.00
Gain 900,000.00

Nov 1 - declsred
Mar 1 - payable
CA - 3M
FV - 2.5M (Nov 1)
FV-COD -2.2M (Dec 31)
2M (Mar1)

1-Nov RE 2,500,000.00
DP 2,500,000.00

31-Dec DP 300,000.00
RE 300,000.00

Lower Carrying Amount 3,000,000.00

FV - cost to distribute 2,200,000.00

Impairment Loss 800,000.00

Equipment 800,000.00

1-Mar DP 200,000.00
RE 200,000.00

DP 2,000,000.00
loss 200,000.00
Equipment 2,200,000.00
 Payable 2,000,000.00
Equipment 2,200,000.00
Gain/Loss (200,000.00)

Choice between cash and noncash dividends

FV Cash Probability
FV Noncash

FV End of the period

Date of settlement

31-Dec Declaration
31-Mar Payable

Cash 2,000,000.00 70%

Prperty CA 2,500,000.00 30%
FV-COD 3,000,000.00

Cash 2,000,000.00 1,400,000.00

Noncash 3,000,000.00 900,000.00
2,300,000.00

Retained Earnings 2,300,000.00

Dividend Payable 2,300,000.00

Cash DP 2,300,000.00
Cash 2,000,000.00
RE 300,000.00

NonCash RE 700,000.00
DP 700,000.00

DP 3,000,000.00
Inventory 2,500,000.00
Gain 500,000.00

10-Nov Declared Dividends Cash - 5,000,000

Noncash - 6,500,000 Carrying Amount
FV 10-Nov 4,000,000.00
31-Dec 5,000,000.00
Settlement 31-Mar 6,000,000.00

1. What is the amount to be recognized as Dividends payable if the stockholders' probability is 60% cash,
2. How much is to be adjusted to the fair value on December 31 (assuming the SH chose the noncash alte
3. What amount is credited to cash if the SH will choose the Cash alternative?
 4. How much will be the gain/loss if the noncash alternative is chosen?

5:40 PM

1 Cash 5,000,000.00 60% 3,000,000.00

NC 4,000,000.00 40% 1,600,000.00
4,600,000.00

2 RE 4,600,000.00
DP 4,600,000.00

RE 400,000.00
DP 400,000.00

3 5,000,000.00

4 CA 6,500,000.00
FV 5,000,000.00

Impairment loss 1,500,000.00

inventory 1,500,000.00

RE 1,000,000.00
DP 1,000,000.00

DP 6,000,000.00
Loss 1,000,000.00
Inventory 5,000,000.00

Scrip Dividend

200000 12%

RE 200000
DP 200,000.00

DP 200,000.00
Interest 12,000.00
Cash 212,000.00

Bond Dividend Liabilities

Share Dividend

RE --> SC

<20% FV (should not be lower than par)

>= 20% Par

Share Capital, 100 par, 20000 authorized, 10,000 outs 1,000,000.00

SP 500,000.00
RE 500,000.00

20% share dividend

RE 200,000.00
DP 200,000.00

DP 200,000.00
SC @ Par 200,000.00

Share Capital, 100 par, 20000 authorized, 10,000 outs 1,000,000.00

SP 500,000.00
RE 750,000.00

10% share dividend FV - 150

RE 150,000.00
DP 100,000.00
SP 50,000.00

DP 100,000.00
SC @ Par 100,000.00

Retained Earnings - Appropriation and Quasi Reorganization

 Retained Earnings

Appropriated Retained Earnings

Legal Appropriation
Contractual Appropriation
n from sharesholders' equity Voluntary

Accounting
Retained Earnings

Net Income
perty Dividends Prior period errors
Dividends
Change in accounting policy
Appropriation

OCI

Share premium
Appropriations
Asset Revaluation
OCI

unappropriated Retained earnings

Quasi Reorganization

Recapitalization
Revaluation of PPE

Cost PPE
Accum Dep'n
CA
FV
Dr Retained Earnings

Current Assets
Overvalued
Current Assets

SC, New
SC, Old
SP - reorganization
Deficit
Current Assets
Non Current Assets
Total Assets

Liabilities
SC
SP
Total Liab and SHE
 he stockholders' probability is 60% cash, 40% noncash?
(assuming the SH chose the noncash alternative)?
h alternative?
ted Retained Earnings
TS - RE
al Appropriation

Added
Adjustment to the beg balance

accounting policy

riated Retained earnings

rganization Large Deficit Negative Retained Earnings SEC

Approved ShareholderBOD
Cost - unrealistic
Advantageous

7,500,000.00
1,000,000.00 Retained Earnings Balance (2,000,000.00)
6,500,000.00 PPE (500,000.00)
6,000,000.00 Inventory (250,000.00)
500,000.00 (2,750,000.00)
Share premium
1,000,000.00
250,000.00
750,000.00

2,000,000.00
5,000,000.00
3,000,000.00
(2,750,000.00)
 750,000.00
6,000,000.00
6,750,000.00

4,500,000.00
2,000,000.00
250,000.00
6,750,000.00
 Retained earnings sample questions

1-Jan 10,000 issued and outstanding

15-Mar 2 for 1 split FV 80
15-Dec 5 peso cash dividends

What amount should be reported as dividends?

a. 50,000
b. 100,000
c. 850,000
d. 950,000

200,000 5 par value10 pesos per share

1-Jan 3,000,000 RE - balance
1-Mar 50,000 TS 20 pesos per share
15-Jun 10,000 TS Sold 25 pesos per share
Net income 600,000

1. What is the total amount of RE?

2. Unappropriated RE?

Retained Earnings, Beg 3,000,000.00

Net Income 600,000.00
3,600,000.00
TS - appropriated 800,000.00 (50K-10K)*20
2,800,000.00

RE, Beg 2,000,000.00

Net incom 2,500,000.00
Prop Div (1,000,000.00)
Appro TS (500,000.00)
URE 3,000,000.00
A Company declared and distributed 10% Stock Dividends with fair value of P1,500,000 and par value of P1,000,000
25% Stock dividend with FV of P4M and Par of P3.5M

What aggregate amount should be debited to RE for the stock dividends?

<20% FV
>=20% Par

10% 1,500,000.00
25% 3,500,000.00
Dr RE 5,000,000.00
000 and par value of P1,000,000, and

Cost TS Orig Issuance

RE, Beg 4,000,000.00
TS (100,000.00) 400,000.00 300,000.00
Prop Dividend (900,000.00) 10,000.00 90.00
Pref Share Div (200,000.00) 2,000,000.00 10%
Prior period er (700,000.00)
Net income 3,000,000.00
5,100,000.00
B 7,500,000.00

C 9,000,000.00 1,500,000.00

FV 1,800,000.00
CA 1,000,000.00

DP 9,500,000.00
CA 5,000,000.00
Gain 4,500,000.00