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PROBLEM 1-2 Kandong Company began operations on January 1, 2020 at PIS per share, one half of the 475,000 ordinary share (P1 par value) that
PROBLEM 1-2 Kandong Company began operations on January 1, 2020 at PIS per share, one half of the 475,000 ordinary share (P1 par value) that had been authorized for issue, In addition, kandong had 250,000 6% preference shares (P5 par value) authorized. During 2020 Kandong reported net income of 512,500 and declared dividends of P188,750 During 2021 Kandong completed the following transactions; Jan, 10 Issued an additional 50,000 ordinary shares for P17 per share. Apr. 2 Issued 75,000 preference shares for PS per share. ful. 21 Authorized the acquisition of a custom made machine to be delivered in January 2022. Kandong appropriated P147,500 of retained earnings for the purchase of the machine. Oct. 25 Issued an additional 25,000 preference shares for P9 per share Dec 31 Reported P607.500 of net income and declared a dividend of P317,500 to shareholders of records on January 31, 2021 to be paid on Febraury 4, 2022 1. What is the total shareholder's equity on December 31, 2021! a. P 5,773,500 c. P 3,956,250 b. P 6.238,750 d. P 5.921.250 2. What is the unappropriated retained earnings balance on December 31, 2021? a. P 683,750 C. P 853,750 b. P 536.250 d. P 566,250
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