Reference no: EM132861047
Question - PQR INC. reported the following amounts in the shareholders' equity section of its December 31, 2019, balance sheet:
Preference shares, P10 par P 400,000 (100,000 shares authorized, 40,000 shares issued)
Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) 100,000
Share premium -PS 112,000
Share premium -OS 80,000
Accumulated profits 1,200,000
The following transaction occurred during 2020:
a. Paid the annual 2019 P1 per share dividend on preference shares and P0.50 per share dividend on ordinary shares. No entry had been made by the client upon the declaration of these dividends on December 29, 2019.
b. Purchased 4, 000 share of its own outstanding ordinary shares for P80,000.
c. Declared a 4 for 1 reverse share split on its ordinary shares.
d. Reissued 350 treasury shares for an equipment with a fair value at P50,000
e. Issued 10,000 shares of preference shares at P15 per share.
f. Declared a 10% stock dividend on the outstanding q ordinary shares when the selling for P48 per share.
g. Issued the share dividend.
h. Retired 150 ordinary shares in the treasury
i. Declared the annual P1 dividend on preference shares and P2 per share dividend on ordinary shares. These dividends are payable in 2021.
j. Registered a net income for 2020 at P940,000.
Required - Determine the adjusted balances of the following accounts:
1. Preference shares
2. Ordinary shares
3. Share premium-Treasury shares
4. Treasury shares
5. Retained Earnings, unappropriated