1. Theory. (5core 2 ) 44. This refers to the amount payable to pieference thpreholder lor every share owned in the case of corporate liquidation. - 2. This is the peso equity of each share if the cotporation is liquidated. 3. Refers to the amount earned by every share outstanding on the corporation's profit at the end of a given period. 4. This part of the shareholder's equity shows the excess of par value. 5. This part of the Shareholder's equity shows the restricted and unrestricted portioh of the corporation's nt ernings. II. Problem 1. The following data refers to the Shareholder's equity a. Preference share, authorized to issue, 5,000 shares at 50 par value per share, Issued 3,000 b. Share Premlum-Ordinary Share c. Ordinary Share, authorized to issue 10,000 shares at 100 par value, issued 7,000 shares d. Share Premlum. Preference shares e. Accumulated Profits and Losses : Accumulated Profits and Losses, Jan 1 Net Profit for the year Requirements: a. How much is the share capital? b. How much is the Share Premlum? c. How much is Retained Earnings? d. Present the Shareholder's equity section in proper form using the above data. (At the back) 2. The accumulated profits and losses of BAKAKA has a beginnilig balance unadjusted of 5,000,000, following transactions have been discovered: a. The office equipment was overstated last year by 40,000 due to under depreciation. b. Salaries expense was overstated by 20,000 . c. During the year, dividend is declared at 100,0000 d. 100,000 was reserve for plant expansion e. At the last month of the year, a reversal for plant expansion happened. f. Net income for the period is 500,000 . of the unadjusted balance of accumulated profits and losses, 3,000,000 is unappropriated. Requirements! a. Compute for the adjusted accumulated profits and losses. b. Of the adjusted accumulated profits and losses: Appropriated? Unappropriated