Reference no: EM133036369
Problem Solving. Answer the following problems with a group of three members.
1. Given is the cash ledger of SGG Company for December 2020. Prepare the cash flow statement of the company using the direct method.
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11/30
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Beginning balance
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P 126,400
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12/01
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Taxes and licenses
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P 8,000
|
|
12/05
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Additional investment
|
30,000
|
12/04
|
Payment for 13'h month of employees
|
41,000
|
|
12/10
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Cash Sales
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15,000
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12/08
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Payment of accounts payable
|
13,000
|
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12/12
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Gain from sale of old equipment
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3,500
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12/15
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Payment for new equipment
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26,000
|
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12/20
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Collection of account sales
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22,000
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12/17
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Payment for cash purchases
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14,500
|
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12/23
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Borrowed funds from LandBank
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20,000
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12/21
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Payment for insurance
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6,000
|
|
12/27
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Collection of notes receivable
|
10,200
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12/29
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Payment for interest
|
5,500
|
|
12/30
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Interest income
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3,000
|
12/29
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Payment for rent
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10,000
|
|
|
|
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12/29
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Payment for salaries
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36,000
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|
|
|
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12/29
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Owner's withdrawal
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15,600
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2. The accounts listed below were taken from the general ledger of the LigoKaNa Corporation on June 30, 2020. Each account has a normal balance.
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Ordinary Shares
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P 1,300,000
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Share Premium - Preference
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P 325,000
|
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Subscribed Ordinary Shares
|
100,000
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Share Premium - Ordinary Treasury Shares
|
17,500
|
|
Ordinary Shares Dividend Distributable
|
70,000
|
Donated Capital
|
62,500
|
|
Treasury Stock - Ordinary (3,000 shares)
|
117,500
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Retained Earnings:
|
|
Share Premium - Ordinary
|
2,075,000
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Unappropriated
|
1,870,000
|
|
7% Preference Shares
|
250,000
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Appropriated for Plant Expansion
|
125,000
|
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7% Preference Shares - Subscribed
|
25,000
|
|
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Additional information:
a. Preference share has a par value of P50 per share. LigoKaNa was authorized to issue 10,000 shares. The preference shares is cumulative and participating.
b. Ordinary share has a par value of P5 per share. LigoKaNa was authorized to issue 500,000 shares.
Required: Prepare the shareholders' equity section of Ligoka Corporation's June 30, 2020 statement of financial position.
3. The shareholders' equity T-accounts of When September Ends, Inc. for the year ended Dec. 31, 2020, are as follows:
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Share Premium - Ordinary
Jan. 1 Balance
Mar. 7 Issued 27,000 shares
|
|
|
|
480,000
324,000
|
|
Aug. 7
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Purchases 4,500 shares
|
216,000
|
I
|
|
|
|
|
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Retained Earnings
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|
|
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Mar. 31
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Dividends
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37,500
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Jan. 1
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Balance
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5,220,000
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|
Jun. 30
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Dividends
|
37,500
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Nov. 1
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Appropriation for Plant Expansion
|
1,000,000
|
|
Sept. 30
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Dividends
|
37,500
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Dec. 31
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Appropriation for Treasury Shares
|
216,000
|
|
Dec. 31
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Dividends
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37,500
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Dec. 31
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Closing (profit)
|
765,000
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Prepare the Statement of Changes in Shareholders' Equity for the year ended Dec. 31, 2020.