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i have the answer but don't have the solution. :( please help PROBLEM NO. 2 Following is the stockholders' equity section of Tenacity Corporation's balance
i have the answer but don't have the solution. :( please help
PROBLEM NO. 2 Following is the stockholders' equity section of Tenacity Corporation's balance sheet at December 31, 2004 Common stock, P10 par value; authorized 1,500,000 shares; issued and outstanding 900,000 shares Additional paid-in capital Retained earnings Total stockholders' equity P9,000,000 750,000 2,700,000 Transactions during 2005 and other information relating to the stockholders' equity accounts were as follows: .On January 26, Tenacity reacquired 75,000 shares of its common stock for P11 per share .On April 4, Tenacity sold 45,000 shares of its treasury stock for P14 per share. .On June 1, Tenacity declared a cash dividend of P1 per share, payable on July 15, 2005 to stockholders of record on July 1, 2005. AP-5901 Page 2 of 7 .On August 15, each stockholder was issued one stock right for each share held to purchase two additional shares of stock for P12 per share. The rights expire on October 31, 2005. .On September 30, 150,000 stock rights were exercised when the market value of the stock was P12.50 per share .On November 2, Tenacity declared a two for one stock split-up and charged the par value of the stock from P10 to P5 per share. On November 20, shares were issued for the stock split. .On December 5, 60,000 shares were issued in exchange for a secondhand equipment. It originally cost P600,000, was carried by the previous owner at a book value of P300,000, and was recently appraised at P390,000 . Net income for 2005 was P720,000 QUESTIONS Based on the above and the result of your audit, determine the following as of December 31, 2005: 1. Common stock 2. Additional paid-in capital 3. Unapproriated retained earnings 4. Total stockholders' equity a. P12,600,000 b. P10,800,000 c. P10,050,000 d. P12,300,000 a. P1,485,000 a. P2,550,000 a. P16,425,000 b. P14,295,000 C. P16,095,000 d. P16,065,000 b. P1,575,000 C. P3,825,000 d. P1,275,000 b. P2,422,500 C. P2,220,000 d. P2,190,000Step by Step Solution
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