Reference no: EM133188041
Question - Rainy Corporation was authorized at the beginning of 2020 with 300,000 authorized shares of P100, par value ordinary shares. At December 31, 2020, the stockholders' equity section of Rainy was as follows:
Ordinary shares, par value P100 per share; authorized 300,000 shares; issued 30,000 shares P 3,000,000
Share premium 300,000
Retained earnings 450,000
Total stockholders' equity P 3,750,000
On June 15, 2021, Rainy issued 50,000 shares of its ordinary shares for P6,000,000. A 5% stock dividend was declared on September 30, 2021 and issued on November 10, 2021 to stockholders of record on October 31, 2021. Market value of ordinary shares was P110 per share on declaration date. The net income of Rainbow for the year ended December 31, 2021 was P475,000.
During 2022, Rainbow had the following transactions:
March 1: Rainy reacquired 3,000 shares of its ordinary shares for P95 per share.
May 31: Rainy sold 1,500 shares of its treasury stock for P120 per share.
August 10: Issued to stockholders one stock right for each share held to purchase two additional shares of ordinary shares for P125 per share. The rights expire on December 31, 2022.
September 15: 25,000 stock rights were exercised when the market value of ordinary shares was P130 per share.
October 31: 40,000 stock rights were exercised when the market value of the ordinary shares was P140 per share.
December 10: Rainy declared a cash dividend of P2 per share payable on January 5, 2023 to stockholders of record on December 31, 2022.
December 20: Rainy retired 1,000 shares of its treasury stock and reverted them to an unused basis. On this date, the market value of the ordinary shares was P150 per share.
December 31: Net income for 2022 was P500,000.
Required - Determine
1. Ordinary Share Capital, December 31, 2022.
2. Share Premium, December 31, 2022.
3. Retained Earnings, December 31, 2022.
4. Total Shareholder's Equity, December 31, 2022.