Question
Wonder Inc. is a public enterprise whose shares are traded in the over the counter market. At December 31, 2019, Wonder has 6 million authorized
Wonder Inc. is a public enterprise whose shares are traded in the over the counter market. At December 31, 2019, Wonder has 6 million authorized shares of P 10 par value ordinary shares, of which 2 million shares were issued and outstanding. The shareholders equity account at December 31, 2018, has the following balances: Ordinary shares P 20,000,000 Share premium 7,500,000 Accumulated profit 6,500,000 Transactions during 2019 and other information relating to the shareholders equity accounts were as follow: On January 5, 2019, Wonder issued at P 54 per share, 100,000 shares of P 50 par value, 9% cumulative convertible preference shares. Each share of preference share is convertible, at the option of holder, into two shares ordinary shares. Wonder had 600,000 authorized shares of preference share. The preference share has a liquidation value equal to its par value. On February 1, 2019, Wonder reacquired 20,000 shares of its ordinary shares for P 16 per share On April 30, 2019, Wonder sold 500,000 shares (previously unissued ) of P10 par value ordinary shares to the public at P 17 per share On June 18, 2019 declared a cash dividend of P 1 per share of ordinary share, payable on July 12, 2019, to shareholders of record on July 1, 2019 On November 10, 2019 Wonder sold 10,000 share of treasury shares for P 21 per share On December 14, 2019, Wonder declared the yearly cash dividend on preference share, payable on January 14, 2019, to shareholders of record on December 31, 2019 On January 20, 2020, before the books were closed for 2019, Wonder became aware that the ending inventories at December were understated by P 300,000 (after tax effect on 2018 net income was P 180,000). The appropriated correction entry was recorded the same day. After correcting the beginning balance inventory, net income for 2019 got P 4,5000,000 From the information provided above, determine the adjusted balance of the following stockholders equity accounts:
A | B | C | D | |
Accumulated profits beginning (as restated) | P 6.620,000 | 6.800,000 | 6.580,000 | 6.680,000 |
Accumulated profits ending Unappropriated | 8,100,000 | 8,250,000 | 8,090,000 | 7,990,000 |
Total contributed capital | 41,450,000 | 41,610,00 | 41,400,000 | 41,000,000 |
Treasury shares | 320,000 | 160,000 | 210,000 | 110,000 |
Total Shareholders equity | 49,700,000 | 49,650,000 | 49,540,000 | 49,380,000 |
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