Sie sind auf Seite 1von 2

STOCKHOLDERS EQUITY

CASE I
ABC Corporation began operation on January 1, 2015. The company was authorized to issue 60,000
share of P10 par value ordinary stock and 120,000 shares of 10% P100 par value convertible
preference stock. In connection with your examination of the companys financial statements, your
noted the following transactions involving stockholders equity during 2015:
Jan.

Issued 1,500 shares of ordinary stock to the corporation promoters in exchange for
property valued at P510, 000 and services valued at P210,00. The property costs
P270,00 3 years ago and was carried on the promoters books at P150,000.

Jan.

31

Issued 30,000 shares of convertible preference stock at P150 per share. Each share
can be converted to five shares of ordinary stock. The corporation paid P225,000 to an
agent for selling the shares.

Feb.

15

Sold 9,000 shares of ordinary stock at P390 per share. The corporation paid issue
costs of P75,000.

May

30

Received subscriptions for 12,000 shares of ordinary stock at

Aug.

30

Issued 2,100 share of ordinary stock and 4,200 shares of preference stock in
exchange for a building with a fair market value of P1,530,000. The building was
originally purchased for P1,140,000 by the investors and has a book value of
P660,000. In addition, 1,800 shares of ordinary stock were sold for
P720,000 cash.

Nov.

15

Payments in full for half of the subscriptions and partial payments for the rest of the
subscriptions were received. Total cash received was P4,200,000. Shares of stock were
issued for the fully paid subscriptions.

Dec.

Declared a cash dividend of P10 per share on preference stock, payable on December
31 to stockholders of record on December 15, and 20 per share cash dividend on
ordinary stock, payable on January 15, 2016 to stockholders of record on December
15.

Dec.

31

Paid the preference stock dividend.

P450 per share.

Net income for the first year of operation was P1,800,000.


Based on the above, determine the following as of December 31, 2015:
1.
2.
3.
4.
5.

Ordinary stock
Share premium of preference stock
Share premium of ordinary stock
Retained earnings
Total stockholders equity

CASE II
You were able to obtain the following information pertaining to the corporations equity accounts. ABC
Corporation has 32,000 shares of P2 par value common stock authorized. Only 75% of these shares

have been issued, and of the shares issued, only 22,000 are outstanding. On December 31, 2015, the
stockholders equity section revealed that the balance in Paid-In Capital in Excess of Par Value
Common was P832,000, and the Retained Earnings balance was P220,000. The Treasury stock was
purchased at an average price of P37.50 per share.
During 2016, ABC had the following transactions:
Jan. 15

ABC issued at P55 per share, 1,600 shares of P50 par 5% cumulative preferred stock;
4,000 shares are authorized.

Feb. 01

ABC sold 3,000 shares of newly issued P2 par value common stock at P42 per share.

Mar. 15

ABC declared a cash dividend on common stock of P0.15 per share,


April 30 to all stockholders of record on April 1

Apr. 15

ABC reacquired 400 shares of its common stock for P43 per share.

payable

on

Employees exercised 2,000 stock options granted in 2000. When the options were
granted, each option entitled the employees to purchase 1 share of common stock for
P50 per share. The share price on the date of grant was also P50 per share. ABC
issued new shares to the
employees.
May 01

ABC declared a 10% stock dividend to be distributed on June 1 to stockholders of


record on May 7. The market price of the common stock was P50 per share on May 1.

31

ABC sold 300 treasury shares reacquired on April 15 and an


additional 400 shares
costing P15,000 that had been on hand since the beginning of the year. The selling
price was P57 per share.

Sept.15

The semi-annual cash dividend on common stock was declared, amounting to P0.15
per share. ABC also declared the yearly dividend on preferred stock. Both are payable
on October 15 to stockholders of record on October 1.

Net income for 2016 was P100,000. Determine the balances of the following as of December 31,
2016:
1.
2.
3.
4.
5.

Preferred stock
Common stock
Additional paid in capital
Treasury stock
Total retained earnings