Reference no: EM133041634
Question - Potter Co. has 32,000 shares of P2 par value common stock authorized, 75% of which have been issued. Of the shares issued, only 22,000 are outstanding. On December 31, 2018, the stockholders' equity section revealed that the balance in APIC account was P832,000, and the retained earnings balance was P220,000.
Treasury stock was purchased at an average cost of P37.50 per share.
During 2019, Potter Co. had the following transactions:
January 15 Issued, at P55 per share, 1,600 shares of P50 par, 5% cumulative preferred stock, 4,000 shares are authorized.
February 1 Sold 3,000 shares of newly issued P2 par value common stock at P42 per share.
March 15 Declared a cash dividend on common stock of P0.25 per share, payable on April 30 to all stockholders of record on April 1.
April 15 Reacquired 400 shares of its common stock for P43 per share.
April 30 Employees exercised all 2,000 stock options granted in 2014 when the market price of the common stock was P55 per share. When the options were granted, each option entitled the employees to purchase 1 share of common stock for P50 per share. The fair value of the options was P2 when they were granted.
May 1 Declared a 10% stock dividend to be distributed on June 1 to stockholders of record on May 7.
May 31 Sold 300 treasury shares reacquired on April 15 and additional 400 shares costing P15,000 that had been on hand since the beginning of the year. The selling price was P57 per share.
September 15 The semiannual cash dividend of P0.25 on common stock was declared. Potter Co. also declared the yearly dividend on preferred stock. Both are payable on October 15 to stockholders of record on October 1. Net income for 2019 was P250,000.
Required -
1. What is the balance of the Preferred Stock account at December 31, 2019?
2. What is the balance of the Common Stock account at December 31, 2019?
3. What is the balance of the APIC at December 31, 2019?
4. What is the balance of the Treasury Stock account at December 31, 2019?
5. What is the total Retained Earnings at December 31, 2019?