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Marasigan Corp. had the following shareholders' equity section on its statement of financial position as at Dec 31, 2018: 6% Preference Shares, P50 par, 100,000
Marasigan Corp. had the following shareholders' equity section on its statement of financial position as at Dec 31, 2018: 6% Preference Shares, P50 par, 100,000 shares authorized, 40,000 shares issued and outstanding P 2,000,000 Ordinary Shares, P1 par, 1,000,000 shares authorized, 300,000 shares issued 300,000 Share Premium-Ordinary 4,700,000 Retained Earnings 35,200,000 Treasury Stock-Ordinary, 10,000 shares at cost (320,000) Total Shareholders' Equity P41,880,000 During 2019 the following events occurred related to shareholders' equity: a. Sold 3,000 shares of the treasury stock for P20 per share. b. Declared and distributed as property dividend the investments in equity securities held by Marasigan to ordinary shareholders. The securities had a carrying value of P400,000. Its fair market value was P750,000 on the date of declaration, P760,000 on the date of record, and P756,000 on the date of distribution. C. Declared a 5% ordinary share dividend. Market value was P40 per share. d. Declared and paid the annual cash dividends to preference shareholders. Required: Prepare the journal entries
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