Silvana Corp. reported the following amounts in the shareholders' equity section of its December 31, 2019, statement of financial position:

Preference shares, P10 par (100,000 shares authorized,

40,000 shares issued)

P400,000

Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued) 100,000 Share premium - Ordinary shares 192,000

Accumulated profits 1,200,000

The following transactions occurred during 2020:

a. At the beginning of 2020, the company paid the annual 2019 P1 per share dividend on preference shares and P0.50 per share dividend on Ordinary shares. These dividends had been declared on December 1, 2019. Further investigations revealed that no entry has been made to account for the declaration of the said dividends.

b. On February 13, the company purchased 4,000 shares of its own outstanding ordinary shares for P80,000.

c. On March 30, the company declared and issued ordinary shares split-up (1 is to 2). d. On April 15, the company issued 10,000 preference shares with 20,000 detachable warrants for P190,000. Four warrants together with P5 shall entitle the holder to acquire one ordinary share. The preference shares were currently selling on this date at P18 per share while each warrant can be sold separately at P1 per warrant. Warrants can be exercised up to December 31, 2022.

e. On June 19, the company reissued 2,800 treasury shares for P50,000. f. On July 5, 80% of the warrants issued on April 15 were exercised. g. On September 30, the company declared a 20% stock dividend on the outstanding ordinary shares when the stock is selling for P6 per share. The share dividends were subsequently issued on October 11.

h. December 1, the company declared the annual 2020 P1 dividend on preference shares and the P0.25 per share dividend on ordinary shares. These dividends are payable at the beginning of 2021.

i. The company registered a net income for 2020 at P940,000. Requirements:

23. What is the effect to stockholders' equity as a result of the share split on March 30? a. No effect. c. 200,000 increase

b. 100,000 increase d. 50,000 increase

24. What is the amount allocated to warrants from the transaction on April 15? a. 20,000 c. 10,000

b. 21,000 d. 19,000

25. The entry to record reissue of treasury shares on June 19 shall involve: a. Debit to share premium - Treasury at P22,000

b. Debit to retained earnings at P22,000.

c. Credit to share premium - Treasury at P22,000.

d. Debit to retained earnings at P6,000.

26. The entry to record the exercise of warrant on July 5 shall involve: a. Credit to share premium - Ordinary shares P15,200.

b. Debit to retained earnings at P15,200.

c. Credit to share premium - Ordinary shares at P25,200.

d. Credit to Ordinary shares at P20,000

27. What is the amount credited to accumulated profits as a result of the declaration of the 20% stock dividend on September 30?

a. 19,400 c. 41,760

b. 17,400 d. 46,560

28. What is the amount credited to accumulated profits as a result of the 2020 cash dividend declaration?

a. 50,000 c. 59,700

b. 61,640 d. 51,640

29. What is the correct balance of the accumulated profits-unappropriated account as of December 31, 2020?

a. 1,956,960 c. 2,006,960

b. 2,008,960 d. 1,905,960

30. Assuming that the share dividends declared in item f was 20%, what is the amount credited to retained earnings as a result of the declaration of stock dividends? a. 9,700 c. 3,880

b. 19,400 d. 23,280

Karina Corporation presented the following balance sheet for Dec. 31, 2020: Assets

Current assets P30,000

Treasury shares (at market value, cost is P15,000) 14,000

Depreciable fixed assets 56,000

Total assets P100,000

Liabilities and Shareholders' Equity

Current liabilities P20,000

Ordinary shares subscribed (500 shares) 10,000

Long-term debt 8,000

Total liabilities P38,000

Ordinary shares (4,000 shares issued) P18,000

10% Preference shares (1,000 shares issued) 12,000

Subscriptions receivable (4,000)

Reserve for depreciation 16,000

Accumulated profits 20,000

Total stockholders' equity P62,000

Total liabilities and stockholders' equity P100,000

Additional information:

1. Your investigation of Karina Corporation's financial records indicates that all authorized shares have been either issued or subscribed. The par values for the ordinary and preference shares are P2 and P10, respectively.

2. The treasury shares were originally purchased when the market price was P20 per share. During 2020, 250 treasury shares were resold for P25 per share. A gain on treasury share transactions was credited for the difference between the original cost and the selling price. The amount was included in the determination of the net income for the year. Furthermore, the excess of cost over market of the treasury shares at the end of the period was recognized as an unrealized loss on the 2020 income statement.

3. You also discovered that a majority stockholder donated during 2020, a land which originally costed the stockholder P5,000 but with a market value of P9,000 during the date of donation.

4. Subscriptions receivable are due six months from December 31, 2020. Determine the adjusted balances of the following:

A B C D

31. Total assets?

32. Total liabilities?

33. Additional paid-in capital?

34. Total contributed capital?

35. Total stockholders' equity?