P15 12 (LO1,2,3,4) (Analysis and Classification of Equity Transactions) Penzi plc was formed on July 1, 2017 It was authorized to issue 300,000 shares of 10 par value ordinary shares and 100,000 shares of 8 25 par value, cumulative and non participating preference shares Penzi plc has a July 1 June 30 fiscal year The following information relates to the equity accounts of Penzi plc Ordinary Shares Prior to the 2019 2020 fiscal year, Penzi plc had 110,000 ordinary shares outstanding issued as follows 1 85 000 shares were issued for cash on July 1, 2017, at 31 per share 2 On July 24, 2017, 5,000 shares were exchanged for a plot of land which cost the seller 70,000 in 2011 and had an estimated fair value of 220,000 on July 24, 2017 3 20,000 shares were issued on March 1, 2018, for 42 per share During the 20192020 fiscal year, the following transactions regarding ordinary shares took place November 30, 2019 Penzi purchased 2,000 of its own shares on the open market at 39 per share Penzi uses the cost method for treasury shares December 15, 2019 Penzi was having a liquidity problem and could not afford a cash dividend at the time Penzi's ordinary shares were selling at 52 per share on December 15, 2019 June 20, 2020 Penzi sold 500 of its own ordinary shares that it had purchased on November 30, 2019, for 21,000 Preference Shares Penzi issued 40,000 preference shares at 44 share July 1, 2018 Cash Dividends Penzi has followed a schedule of declaring cash dividends in December and June, with payment being made to shareholders of record in the following month The cash dividends which have been declared since inception of the company through June 30, 2020, are shown below Declaration Date Ordinary Shares Preference Shares 12 15 18 0 30 per share 1 00 per share 6 15 19 0 30 per share 1 00 per share 12 15 19 1 00 per share No cash dividends were declared during June 2020 due to the company's liquidity problem Retained Earnings As of June 30, 2019, Penzi's retained earnings account had a balance of 690,000 For the fiscal year ending June 30, 2020, Penzi reported net income of 40,000 Instructions Prepare the equity section of the statement of financial position, including appropriate notes, for Penzi plc as of June 30, 2020, as it should appear in its annual report to the shareholders

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P15.12 (LO1,2,3,4) (Analysis and Classification of Equity Transactions) Penzi plc was formed on July 1, 2017. It was authorized to issue 300,000 shares of 10

P15.12 (LO1,2,3,4) (Analysis and Classification of Equity Transactions) Penzi plc was formed on July 1, 2017. It was authorized to issue 300,000 shares of 10 par value ordinary shares and 100,000 shares of 8% 25 par value, cumulative and non-participating preference shares. Penzi plc has a July 1-June 30 fiscal year.

The following information relates to the equity accounts of Penzi plc.

Ordinary Shares

Prior to the 2019-2020 fiscal year, Penzi plc had 110,000 ordinary shares outstanding issued as follows

1. 85.000 shares were issued for cash on July 1, 2017, at 31 per share.

2. On July 24, 2017, 5,000 shares were exchanged for a plot of land which cost the seller 70,000 in 2011 and had an estimated fair value of 220,000 on July 24, 2017.

3. 20,000 shares were issued on March 1, 2018, for 42 per share.

During the 20192020 fiscal year, the following transactions regarding ordinary shares took place.

November 30, 2019	Penzi purchased 2,000 of its own shares on the open market at 39 per share. Penzi uses the cost method for treasury shares.
December 15, 2019	Penzi was having a liquidity problem and could not afford a cash dividend at the time. Penzi's ordinary shares were selling at 52 per share on December 15, 2019.
June 20, 2020	Penzi sold 500 of its own ordinary shares that it had purchased on November 30, 2019, for 21,000.

Preference Shares

Penzi issued 40,000 preference shares at 44 share July 1, 2018.

Cash Dividends

Penzi has followed a schedule of declaring cash dividends in December and June, with payment being made to shareholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2020, are shown below.

Declaration Date	Ordinary Shares	Preference Shares
12/15/18	0.30 per share	1.00 per share
6/15/19	0.30 per share	1.00 per share
12/15/19	-	1.00 per share

No cash dividends were declared during June 2020 due to the company's liquidity problem.

Retained Earnings

As of June 30, 2019, Penzi's retained earnings account had a balance of 690,000. For the fiscal year ending June 30, 2020, Penzi reported net income of 40,000.

Instructions

Prepare the equity section of the statement of financial position, including appropriate notes, for Penzi plc as of June 30, 2020, as it should appear in its annual report to the shareholders.