Reference no: EM133005168

Question - The shareholders' equity of Brenalyn Corporation at January 1, 2018 appears below:

12% Preference Shares, P200 par, 20,000 shares authorized, P1,400,000

7,000 shares issued and outstanding

Share Premium-Preference 175,000

Ordinary shares, P100 par, 180,000 shares authorized, 3,500,000

35,000 shares issued and outstanding

Share Premium-Ordinary 1,750,000

Retained earnings 4,500,000

During 2018, the following transactions occurred:

Jan 5: Issued 20,000 ordinary shares for P180 per share

Jan 28: Purchase 6,000 ordinary shares for the treasury at P200 per share

Feb 14: Sold half of the treasury shares acquired last January 28 for P220 per share

Jul 15: Issued 4,000 preference shares to acquire special equipment with a fair market value of P1.440,000

Oct 15: Received subscriptions to 18,000 ordinary shares at P250 per share

Nov 15: Received cash payment from each subscriber for 40% of the ordinary shares subscription price

Nov 27: Received full payment of the 10.000 shares on Oct 15 and Nov. 15.

Dec 31: Closed net income of P1,000,000 from the income summary account to retained earnings

Required -

a. How much is the Preference share on December 31, 2018 statement of financial position?

b. How much is the Ordinary share on December 31, 2018 statement of financial position?

c. How much is the Total share Premium on December 31, 2018 statement of financial position?

d. How much is the Retained earnings - unappropriated on December 31, 2018 statement of financial position?

e. How much is the total shareholders' equity on December 31, 2018 statement of financial position?