User Account

All Pages

Prepare the statement of changes in shareholders equity

Assignment Help Accounting Basics
Reference no: EM132973902

Question - AUDITING RETAINED EARNINGS AND DIVIDENDS - The accounts from the shareholders' equity section of the balance sheet of Western Company showed the following at December 31, 2020:

Ordinary share P475,000

Share Premium 6,650,000

Retained Earnings 787,500

Western issued 475,000 shares of the P1 par value Ordinary share on January 1, 2020.

The company also is authorized to issue 500,000 shares of P5 par value, 6% preference share.

During 2021, Western had the following transactions:

Jan. 10 Issued an additional 90,000 shares of Ordinary Share at P17 per share.

Apr. 1 Issued 100,000 shares of preference share at P8 per share.

July 19 The board of directors authorized the appropriation of P295,000 of retained earnings for the purchase of equipment.

Oct. 23 Sold an additional 60,000 shares of preference share at P9 per share.

Dec. 31 Net income for the year was P1,200,000. The board of directors declared a dividend of P623,000 to shareholders of record on January 15, 2022, to be paid on February 1, 2022.

Required - Prepare the statement of changes in shareholders' equity for 2021 using the information given above.

Reference no: EM132973902

Questions Cloud

Providing legal assistance to a client seeking divorce : Katherine has come to the attorney's office where you work to discuss divorcing her husband of 8 years. She believes that she would like this office to represen
What legislative requirement an organisation needs to follow : What legislative requirements an organisation needs to follow in preparing these reports? Income Statement and Balance sheet are two common reports.
Examples of the presidents informal powers : Explain how your selected power has played a role in expanding the powers of the modern presidency. Use one specific example of presidential actions
Estimate of the mean waiting time of all the patients : A hospital admissions manager took a random sample of 50 patients and found that the mean waiting time of patients was 7.2 minutes. The population standard devi
Prepare the statement of changes in shareholders equity : Western issued 475,000 shares of the P1 par value Ordinary share on January 1, 2020. Prepare the statement of changes in shareholders equity
What is the adjustment entry in the consolidation worksheet : What is the adjustment entry in the consolidation worksheet at reporting date? During the current period, a subsidiary entity sold inventories to parent entity.
What is inventory control : What is inventory control?
Application of production principles and processes : Do you think that "McDonaldization" (described in your required text) - the application of production principles and processes of the fast-food industry to thei
Examine the potential conflicts : Examine the potential conflicts that exists between the desire to improve the quality of financial reporting and the need for an earnings management process

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journalize the transactions

Jan. 3. Split the common stock 2 for 1 and reduced the par from $50 to $25 per share. Instructions - Journalize the transactions

  Discuss the elements of the fraud triangle

Discuss the elements of the fraud triangle as they apply to Glenn's decision to change the financial statements to reflect more favorable results

  Prepare a cash budget for the months of may and june

Use this information to prepare a Cash Budget for the months of May and June, using the template provided

  On january 1 molly corp purchased land with a usable

on january 1 molly corp. purchased land with a usable building on it for 240000. at the time of purchase the fair

  What the proper amount to be shown as cash

Mickey Company's checkbook balance on December 31,2019 was P5,000,000. What the proper amount to be shown as "cash" on the balance sheet at December

  How much of the premium will be recognised as an expense

Under the accrual system of accounting how much of the premium will be recognised as an expense for the current year ended 30 June

  What are the eliminating entries

Equipment BV 50,000 FV 90,000 life of 8 years on X1. Building BV 70,000 FV 40,000 life of 12 years. What are the eliminating entries in Year 3

  Determine the activity rates

Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments

  Sales budget for the last six months of 2007

Copper Corporation has the following sales budget for the last six months of 2007

  What should be the net cash provided by operating activities

Based on the information given above, what should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31

  Do advancements in technology pose any direct threats

Do advancements in technology pose any direct and/or indirect threats to the global environment? Choose one advancement and provide two examples of direct.

  What amount should Carter report as net cash

A patent for $16.0 million, $18.0 million, and $13.0 million, respectively. What amount should Carter report as net cash from ?nancing activities

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd