Reference no: EM133176492
Question - The following data were compiled prior to preparation of the financial statements of Pauleen Company as of December 31, 2021:
Excess of par-ordinary share P500,000
Excess of par-preference share 400,000
Subscribed ordinary share capital, 25% partially paid 250,000
Subscription receivable-preference (payable June 30, 2022) 450,000
Subscription receivable-ordinary (payable June 30, 2023) 187,500
Subscribed preference share capital, 10% partially paid 500,000
Donated capital 600,000
Ordinary share capital, par P100 8,000,000
Treasury shares, 10,000 shares 800,000
Preference share capital, par P100 1,000,000
Accumulated profits, unappropriated 1,500,000
Accumulated profits, reserved:
For bond redemption P2,000,000
For plant expansion 2,500,000
For treasury share 800,000
Additional information:
Jan 31, 2022 Issued 6,000 shares of its P100 par ordinary share to Max L as compensation for P1,000 hour of legal services performed. Max L usually bills P500 per hour for legal services. On this date of issuance, Pauleen share was selling at a public trading at P150 per share.
Mar 1, 2022 Exchanged 20,000 shares of its ordinary shares for land. A few months ago, the land was appraised by an independent appraiser at P3,000,000. Boom shares are currently traded at the stock exchange at P170.
May 9, 2022 Collected fully half of the subscribed ordinary share capital for which issued the stock certificate.
May 25, 2022 Reacquired 12,000 ordinary shares at P120 per share.
Jun 1, 2022 Sold 5,000 Treasury shares at P100. The company uses FIFO method.
Jun 30, 2022 Shareholders approved a 2 for 1 ordinary share split. Received full payment of the subscribed preference share for which stock certificates were issued.
Sep 30, 2022 Sold 7,500 treasury shares at P100 per share.
Dec 1, 2022 Retired 5,000 of the remaining treasury shares.
Dec 31,2022 Net income for the year is 2 million.
Dec 31, 2022 Appropriated the retained earnings for the treasury shares cost.
Required -
A. Journalize the 2022 transactions.
B. Prepare the shareholders' equity section in good form.
C. Give the correct answer for each question below:
1. What is the total contributed capital as of December 31, 2021?
2. What is the total legal capital as of December 31, 2021?
3. What is the total share premium as of December 31, 2021?
4. What is the total retained earnings as of December 31, 2021?
5. How many ordinary shares are outstanding and issued on December 31, 2021 respectively?
6. How many preference shares are outstanding and issued on December 31, 2021 respectively? 7. How much is the shareholder's equity of Pauleen on December 31, 2021?
8. How much is the land balance as of December 31, 2021?
9. By what amount should the share premium account of Pauleen increase/decrease as a result of the issuance on Jan 31, 2022?
10. By what amount should the share premium account of Pauleen increase/decrease as a result of the issuance on Mar 1, 2022?
11. How many ordinary shares are outstanding and issued on December 31, 2022 respectively? 12. How much will be the balance of the appropriated retained earnings on December 31, 2022? 13. What is the total contributed capital as of December 31, 2022?
14. What is the par value of the ordinary shares and preference shares on December 31, 2022 respectively?
15. What is the total legal capital as of December 31, 2022?
16. How much is the balance of Treasury shares as of December 31, 2022?
17. What is the total share premium as of December 31, 2022?
18. What is the total retained earnings as of December 31, 2022?
19. If the ordinary share is no-par, how much is the total legal capital of the Company in December 31, 2021 and December 31, 2022 respectively?