JANUARY 1, 2020,PENN COMPANY BEGAN OPERATIONS BY ISSUING AT 15 PER SHARE ONE HALF OF THE 950,000 ORDINARY SHARES OF 10 PAR VALUE THAT HAD BEEB AUTHORIZED FOR SALE. IN ADDITION, THE ENTITY HAS 500,000 AUTHORIZED PREFERENCE SHARES OF 5 PAR VALUE

Prob Problem 20-18 (JAA) Orlan with on January 190go Benn Company . Heoperations One showing at pines one half of the 189 090 ordingo sha shares of P10 par value the that had been authorized for sale Su In addition, the int shares of PG par value. the entity has 500,000 authorized preference on During 2020 the entity had P1,025,900 of net income are declared pono 280,000 of dividend. During 2021, the entity had the following transaction. Issued 100,000 ordinary shares for P17 per share. Issued 150,000 preference shares for P8 per share Authorized the purchase of a custom-made machine be delivered in January 2022. The entity restricted P300,000 of retained earnings for the purchase of the machine. Issued additional 50,000 preference shares for Pgp share. Reported P1. 215.000 of net income and declared on December 31. 2021 a cash dividend of 1635.000 shareholders of record on January 15, 2022 to be paid on February 1, 2022. I. What is the shareholders' equity on December 31, 20207 a. 7,920,000 b. 7,125,000 C. 8,150,000 d. 8,380,000 What is the shareholders' equity on December 31, 20217 a. 11,850,000 b. 11,550,000 C. 12,485,000 d. 10,635,000