Académique Documents
Professionnel Documents
Culture Documents
2.
40,000
10,000
20,000
30,000
40,000
10,000
10,000
60,000
E 10 -2
1. Treasury Shares (5,000 sh x P20)
Cash
100,000
100,000
Retained Earnings
Retained Earnings Appropriated for Treasury Shares
100,000
100,000
98,000
70,000
70,000
28,000
70,000
SHAREHOLDERS EQUITY
2. Contributed Capital:
Ordinary Share Capital, P25 par, 100,000 shares issued,
98,500 shares outstanding, 1,500 shares in the treasury
Ordinary Share Premium
Paid-in Capital from Sale of Treasury Shares
Retained Earnings:
Retained Earnings Appropriated for Treasury Shares
Unappropriated Retained Earnings
Total Contributed Capital and Retained Earnings
Less Treasury Shares, at cost - 1,500 shares
Total Shareholders Equity
P2,500,000
1,000,000
28,000
P 30,000
1,470,000
E 10-3
1. Alternative 1
a. Received 5,000 Ordinary Shares as donation from a major shareholder
b.
Cash
250,000
P3,528,000
1,500,000
P5,028,000
30,000
P4,998,000
page 2
Donated Capital
250,000
Alternative 2
a. Treasury Shares
Donated Capital
200,000
b.
250,000
200,000
Cash
Treasury Share
PIC from Sale of Treasury Shares
2.
Issued
Outstanding
200,000
50,000
after the
donation
150,000 shs
145,000 shs
E 10-4
1.a
Preference Share Capital (2,000 sh x P50)
Preference Share Premium
PIC from Conversion of PSC into OSC
Ordinary Share Capital (2,000 sh x 4 x P10)
b
2.a
b
c
100,000
50,000
70,000
80,000
100,000
50,000
50,000
100,000
50,000
10,000
200,000
160,000
OS 108,000
OS 120,000
OS 116,000
E 10-5
1.a
Ordinary Share Capital, P25 par
Ordinary Share Capital, P5 par
b
500,000
500,000
500,000
500,000
500,000
100,000
500,000
100,000
300,000
300,000
500,000
100,000
2
b
page 3
E 10-6
1.a Treasury Shares
Cash
50,000
50,000
Retained Earnings
Retained Earnings Appropriated for Treasury Shares
50,000
48,000
40,000
2.
8,000
40,000
40,000
7,000
3,000
10,000
10,000
10,000
100,000
20,000
70,000
50,000
P 10 -1
1.a PSC Subscription Receivable (10,000 sh x P125)
OSC Subscription Receivable (20,000 sh x P60)
PSC Subscribed (10,000 sh x P100)
OSC Subscribed (20,000 sh x P50)
Preference Share Premium
Ordinary Share Premium
b.
50,000
1,250,000
1,200,000
1,000,000
1,000,000
250,000
200,000
Cash
PSC Subscription Receivable (P1,250,000 x 50%)
OSC Subscription Receivable (1,200,000 x 50%)
1,225,000
Cash
PSC Subscription Receivable
OSC Subscription Receivable
1,225,000
PSC Subscribed
OSC Subscribed
Preference Share Capital
1,000,000
1,000,000
625,000
600,000
625,000
600,000
1,000,000
c.
d.
e.
f.
g.
h.
i.
j.
k.
2.
SHAREHOLDERS EQUITY
Contributed Capital:
Share Capital:
10% Preference Share Capital, P100 par, 20,000 shares
authorized, 7,000 shares issued and outstanding
Ordinary Share Capital, P30 stated value, 50,000 shares
authorized, 23,000 shares issued and outstanding
Additional Paid-in Capital:
Preference share Premium
Paid-in Capital from Exchange of Par for No-Par Shares
Paid-in Capital from Sale of Treasury Shares
Paid-in Capital from Conversion of PSC into OSC
Donated Capital
Total Contributed Capital
Retained Earnings
Total Shareholders Equity
page 4
1,000,000
137,500
137,500
300,000
75,000
150,000
225,000
93,000
82,500
10,500
108,000
108,000
60,000
55,000
5,000
1,150,000
200,000
690,000
660,000
750,000
750,000
93,000
93,000
P700,000
690,000
P175,000
660,000
15,500
225,000
108,000
P1,390,000
1,183,500
P2,573,500
657,000
P3,230,500
P 10-2
Requirement 1
a. Treasury Shares Ordinary SC (5,000 sh x P16)
Cash
Retained Earnings
Retained Earnings Appropriated for Treasury Shares
b.
c.
d.
e.
f.
g.
page 5
80,000
80,000
80,000
80,000
1,000,000
50,000
250,000
800,000
12,500
10,000
2,500
571,000
571,000
Land
Treasury Shares (2,000 sh x P16)
PIC from Sale of Treasury Shares
50,000
32,000
2.
SHAREHOLDERS EQUITY
Contributed Capital:
Share Capital:
5% Preference Share Capital, P100 par, 40,000 shares
issued and outstanding
Ordinary Share Capital, P10 par, 381,000 shares issued,
378,000 shares outstanding, 3,000 shares in treasury
Additional Paid-in Capital:
Preference Share Premium
Ordinary Share Premium
Paid-in Capital from Sale of Treasury Shares
Paid-in Capital from Conversion of PSC into OSC
Total Contributed Capital
Retained Earnings:
Retained Earnings Appropriated for treasury Shares
Unappropriated Retained Earnings
Total Contributed Capital and Retained Earnings
Less Treasury Shares at Cost (3,000 shares)
32,000
18,000
32,000
3,810,000
3,810,000
200,000
200,000
P4,000,000
3,810,000
P 200,000
752,500
18,000
250,000
P 48,000
1,081,000
P 7,810,000
1,220,500
P 9,030,500
1,129,000
P10,159,500
48,000
page 6
P10,111,500
P 10 3
SHAREHOLDERS EQUITY
Contributed Capital:
Share Capital:
10% Preference Share Capital, P50 par, 115,000
shares issued and outstanding
P 5,750,000
Ordinary Share Capital, P5 par, 2,050,000 shares
issued, including 5,000 shares in the treasury
10,250,000
Additional paid-in capital:
Preference Share Premium
P 1,150,000
Ordinary Share Premium
5,375,000
Paid-in Capital from Sale of Treasury Shares
30,000
Total Contributed Capital
Retained Earnings:
Retained Earnings Appropriated for Treasury Shares
P 70,000
Unappropriated Retained Earnings
4,310,000
Total Contributed Capital and Retained Earnings
Less Treasury Shares, at cost (5,000 shares)
Total Shareholders Equity
*A work sheet may be prepared to facilitate computation of the above balances.
P16,000,000
6,555,000
P22,555,000
4,380,000
P26,935,000
70,000
P26,865,000
Problem 10 4
Assets
Liabilities
SE
APIC
RE
Net Income
1.
D
NE
D
NE
NE
NE
2.
I
NE
I
I
NE
NE
3.
I
NE
I
D*
NE*
NE
I
NE
I
NE*
D*
NE
4.
NE
NE
NE
D
D
NE
*The indicated loss may be debited to the APIC arising from sale of the treasury Share Capital in No. 2
or such indicated loss may be debited to retained earnings.
P 10-5
Javier Company
Statement of Changes in Shareholders Equity
For the Fiscal Year Ended June 30, 2009
Balances, June 30, 2008
Issuance of 5,000 PSC @ P140
Issuance of 20,000 OSC @ P70
Retirement of 1,000 PSC @ P150
Purchase of 500 TS @ P80
Share l split of 2 for 1
Reissuance of TS @ P52
Declaration of dividends
PSC = P3,400,000 x 10%
OSC = 235,000 x P6
Profit for the year
Balances, June 30, 2009
PS
P3,000,000
500,000
OS
P1,000,000
200,000
( 100,000)
APIC
P 9,200,000
200,000
1,200,000
(
40,000)
RE
P2,550,000
(
TS
10,000)
P400,000
60,000
P3,400,000
P1,200,000
P10,620,000
( 200,000)
( 340,000)
( 1,410,000)
750,000
P1,540,000
P200,000
page 7
MC10-1
MC10-2
MC10-3
MC10-4
200,000 sh 2 = 100,000 sh x P5
MC10-5
15,000 sh x 3 x p25
P1,125,000
MC10-6
P1,500,000
450,000
( 230,000)
( 72,000)
32,000
P1,680,000
MC10-7
MC10-8
P 210,000
120,000
P 90,000
MC10-9
MC10-10
B
C
TM 39
1.
T
2.
T
3.
F
4.
F
5.
F
6.
7.
8.
9.
10.
T
T
T
F
T
P 420,000
( 130,000)
( 30,000)
P 260,000
P 480,000
( 78,000)
300,000
P 702,000
P6.00
11.
12.
13.
14.
15.
TM 40
1.
Treasury shares
2.
Convertible preference shares
3.
Stock or share split / share split-up
4.
Recapitalization
5.
Paid-in Capital from Retirement of Share Capital
6.
Cost method
7.
Share split down / reverse share split
8.
Retained Earnings
500,000 shs
T
T
F
F
T
16.
17.
18.
19.
20.
F
F
T
T
F
9.
10.
11.
12.
13.
14.
15.
Decrease
Retained Appropriated for Treasury shares
Memorandum entry
Selling price
Contributed Capital
Reacquisition by donation
Retirement of share capital
TM 41
1. D
2, C
3. D
4. A
5. B
6. A
7. D
8. C
9. C
10. D
11. A
12. D
13. C
14. B
15. B
16. A
17.
18.
19.
20.
page 8
A
C
B
B
TM 42
Problem A:
Outstanding
Shares
1.
230,000
2.
400,000
3.
400,000
4.
200,000
5.
195,000
Ordinary
Share Capital
P 4,600,000
4,000,000
8,000,000
3,000,000
3,900,000
Add'l Paid-In
Capital
P1,350,000
1,200,000
1,200,000
2,200,000
1,180,000
TM 43
a.
Preference Share Capital (500 sh x P100)
Preference Share Premium (500 sh x P20)
Paid-In Capital from Retirement of PSC
Cash (500 sh x P115)
PSC 3,500 shs
b.
Retained
Earnings
P4,650,000
5,400,000
1,400,000
5,400,000
5,400,000
TSE
P10,600,000
10,600,000
10,600,000
10,600,000
10,480,000
50,000
10,000
2,500
57,500
25,000
25,000
page 9
Cash
Treasury Shares
Paid-In Capital from Sale of Treasury Shares
PSC 4,000 shs
c.
d.
25,000
3,000
OSC 10,000shs
28,000
100,000
20,000
80,000
40,000
200,000
200,000