Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During your audit of Choco Corporation for the year 2020, its initial year of operations, you find the following entries in its shareholders' equity

During your audit of Choco Corporation for the year 2020, its initial year of operations, you find the following entries in its "shareholders' equity" account: Date Jan 1 Jan 15 Mar 1 May 15 Jun 10 Dec 31 Dec 31 Particulars Issuance of 15,000 ordinary shares of P10 par, authorized 50,000 shares in exchange for real property with market value of P200,000 Sale of 20,000 ordinary shares at P12 per shares Purchase of 2,000 Choco Corporation's shares at P15 per share Loss on sale of motor equipment Proceeds from sale of 1,000 treasury shares Declared cash dividends payable quarterly beginning Apr 1, 2021. Net profit for the year Required: Determine the adjusted balance of the following: 1. Ordinary shares 2. Additional paid-in capital 3. Net profit for the year 4. Retained earnings 5. Total stockholders' equity 6. Book value per share Dr P30,000 10,000 20,000 Cr P150,000 240,000 17,000 79,000

Step by Step Solution

3.44 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

To determine the adjusted balance of each account in the shareholders equity for Choco Corporation w... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

20. In what ways are hurt feelings similar to physical pain?

Answered: 1 week ago