SHAREHOLDERS’

EQUITY SECTION
OF THE STATEMENT
OF FINANCIAL A List of Capital Accounts found in

POSITION
this section of the balance sheet
Paid in Capital

• 2% Preference Shares, P100par, 10000shares authorized,

• 2,000shares issued with 500 shares in the treasury. P200,000
• Ordinary Shares, P10 par, 50,000shares authorized,
• 1000 shares issued with 100 shares in the treasury. 10,000
• Subscribed 2% Preference Share 30,000
• Less: Subscription Receivable (1,000) 29,000
• Subscribed Ordinary Shares. 40,000
• TOTAL P279,000
Additional Paid in Capital

• Premium on 2% Preference Share. P100,000

• Premium on Ordinary Shares. 30,000
• Paid in Capital from Treasury Shares. 40,000
• Paid in Capital from Stock Retirement. 10,000
• Paid in Capital from Donated Shares. 500,000
• Donated Shares. 500,000
TOTAL. P 1,080,000
Retained Earnings

• Unappropriated Retained Earnings. P100,000

• Appropriated Retained Earnings for Treasury Shares 29,000
• Appropriated Retained Earnings for Plant Expansion. 500,000
• Appropriated Retained Earnings for Contingencies. 260,000
• TOTAL. P889,000
Continuation

• Total P 2,248,000
• Less: Treasury Shares- 2% Preference. P5,000
• Treasury Shares-Ordinary. 1,000 (6,000)

• TOTAL SHAREHOLDERS’ EQUITY P 2,242,000