Reference no: EM133184370

Question - An abstract of the shareholders' equity of the ZYZ Co. on December 31, 2021 appears as follows:

Preference Share, Php35 par value, 150,000 shares issued and outstanding Php5,250,000

Ordinary Shares, Php25 par value, 300,000 shares issued and Outstanding 7,500,000

Premium on Preference Share 300,000

Premium on Ordinary Share 300,000

Retained Earnings 1,200,000

Treasury Share - Ordinary 60,000

The Board of Directors decided to establish a reserve of Php250,000 for contingencies and Php350,000 for plant expansion.

Required -

1. Record the appropriation of Retained Earnings.

2. Prepare the shareholders' equity section of ZYZ Corporation.