Question
ABC Company has two classes of share capital outstanding: 10%, P20 par preference and P1 par ordinary. During the fiscal year ended November 31, 2020,
ABC Company has two classes of share capital outstanding: 10%, P20 par preference and P1 par ordinary. During the fiscal year ended November 31, 2020, the company was active in transactions affecting the Shareholders' equity. The following summarizes these transactions:
Types of Transactions
a. Issue of Preference Share:8,000 s..;@P26
b.Issue of Ordinary Share:25,000 s..;@P65
c.Reacquisition and retirement of Preference Share: 4,000 shares @ P29
d.Purchase of treasury stock - ordinary (reported at cost): 10,000 shares@ P70
e.Share split - ordinary: 2 for 1
f.Reissuance of treasury stock - ordinary (after share split): 10,000 shares@55
Balances of the accounts in theShareholders' Equity Section of November 30, 2019, balance sheet were:
Preference Share, 60,000 sharesP1,200,000
Ordinary Share, 200,000 shares200,000
Share Premium - preference300,000
Share Premium - ordinary12,600,000
Retained earnings780,000
prepare the shareholders equity section of the statement of financial position
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