Reference no: EM132994399

Problem - Comprehensive Shareholders' Equity Transactions - The shareholders' equity of the Rodriguez Corporation on June 30, 2017, is shown below:

Share Capital

Ordinary Shares - P6 par value, 1,000,000 shares authorized, 250,000 shares issued and outstanding P1,500,000

Share Premium-Ordinary 820,000

Total Share Capital P2,320,000

Retained Earnings 970,000

Total Shareholders' Equity ' P3,290,000

Transactions for the next ?scal year were as follows:

a. The board of directors declared a 2-for-1 share split.

b. The board of directors obtained authorization to issue 50,000 shares of P100 par value, 6% non-cumulative preference shares.

c. Issued 12,000 ordinary shares for a building appraised at P96,000.

d. Purchased 8,000 shares of the corporation's ordinary shares for P64,000.

e. Issued 20,000 preference shares for P100 per share.

f. Sold 5,000 shares of treasury stock for P35,000.

g. Declared cash dividends of P6 per share on preference shares and P.20 per share on ordinary shares.

h. Date of record.

i. Paid the preference and ordinary shares cash dividends.

i. Declared a 10% share dividend on ordinary shares. The market value was P10 per share. The share dividend is distributable after the end of the ?scal year.

k. Profit for the year was P340,000.

Required -

1- Prepare the journal entries to record the transactions.

2- Prepare the statement of retained earnings for the year ended June 30, 2018.

3. Prepare the shareholders' equity section of the statement of ?nancial position as at June 30, 2018.