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Shareholder's Equity Breakdown

The document contains journal entries for two companies (Problems A and B) on various dates for transactions such as issuance of shares for cash, legal expenses, purchase of land, and recognition of income. It also shows an income summary and calculation of total shareholders' equity for Problem B, including contributions from ordinary shares, preference shares, share premium, and retained earnings.

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Maeggan Magsalay
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13 views1 page

Shareholder's Equity Breakdown

The document contains journal entries for two companies (Problems A and B) on various dates for transactions such as issuance of shares for cash, legal expenses, purchase of land, and recognition of income. It also shows an income summary and calculation of total shareholders' equity for Problem B, including contributions from ordinary shares, preference shares, share premium, and retained earnings.

Uploaded by

Maeggan Magsalay
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MAGSALAY, MAEGGAN S.

Problem A Problem B
a. Journal Entries: a. Journal Entries:
Jan 1
Cash (50,000x220) 11,000,000.00 Cash (150,000x120) 18,000,000.00
Ordinary shares (50,000x200) 10,000,000.00 Ordinary shares (150,000x100) 15,000,000.00
Share premium (50,000x20) 1,000,000.00 Share premium (150,000x20) 3,000,000.00

Mar 25 Cash (50,000x60) 3,000,000.00


Legal expenses (2,000x240) 480,000.00 Preference shares (50,000x50) 2,500,000.00
Ordinary shares (2,000x200) 400,000.00 Share premium (50,000x10) 500,000.00
Share premium (2,000x40) 80,000.00
Subscriptions receivable - preference (20,000x100) 2,000,000.00
Sep 30 Subscribed preference shares (20,000x50) 1,000,000.00
Land (10,000x260) 2,600,000.00 Share premium - preference (20,000x50) 1,000,000.00
Ordinary shares (10,000x200) 2,000,000.00
Share premium (10,000x60) 600,000.00 Income summary 5,000,000.00
Retained Earnings 5,000,000.00

b. Shareholder's Equity
Ordinary shares 15,000,000.00
Preference shares 2,500,000.00
Subscribed preference shares 1,000,000.00
Share premium - ordinary 3,000,000.00
Share premium - preference (500,000 + 1,000,000) 1,500,000.00
Total contributed earnings 23,000,000.00
Retained earnings 5,000,000.00
Total Shareholder's Equity 28,000,000.00

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