You were engaged by STATE CORPORATION, a publicly held company whose shares are traded on the Philippine Stock Exchange, to conduct prepare its 2021 Financial Statements. You were told by the companys controller that there were numerous equity transactions that took place in 2021. The Shareholders equity accounts at December 31, 2020, had the following balances: Share capitalPreference, P100 par value, 6% cumulative; 9,000 shares authorized; 5,400 shares issued And outstanding P540,000 Share capitalOrdinary, P1 par value, 540,000 shares authorized; 360,000 shares issued and outstanding 360,000 Share premium 720,000 Retained earnings 294,000 Total shareholders equity P1,914,000 You summarized the following transactions during 2021 and other information relating to the shareholders equity in your working papers as follows: January 6, 2021 Issued 13,500 ordinary shares in exchange for land. On the date issued, the shares had a market price of P16.50 per share. The land had a carrying value of P126,000. January 20, 2021 Issued 10,000 ordinary shares to Atty. M. Maryland as compensation for 500 hours of legal services performed. Atty. Maryland usually bills P400 per hour for legal services. On the date of issuance, the share was trading at P17. February 22, 2021 Purchased 4,500 of its own ordinary shares to be held as treasury shares for P24 per share. February 28, 2021 Subscriptions for 12,600 ordinary shares were received at P26 per share, payable 50% down and the balance by March 15. March 15, 2021 The balance due on 10,800 ordinary shares was received and those shares were issued. April 15, 2021 - The subscriber who defaulted on the 1,800 remaining shares from the subscription was declared delinquent after the call date. The corporation incurred P2,000 advertising expenses. Among the bidders in the auction, Alabama is the highest bidder and paid the offer price. Shares were also issued. August 30, 2021 Reissued 1,800 treasury shares for P20 per share. September 12, 2021 - Received 1,000 companys own shares from Mr. Florida as donation. September 30,2021 - Sold all of Mr. Florida donated shares for 24 per share November 30, 2021 Declared a cash dividend of P0.40 per share to all ordinary shareholder of record December 15, 2021. The dividend was paid on December 30, 2021.

December 15, 2021 Declared the required annual cash dividends on preference shares for 2021. No dividends in arrears from the previous years. The dividend was paid on January 15, 2022. December 31, 2021 - Closed net income. Revenues were 500,000 while expenses were 248,000. INSTRUCTIONS: 1. Form a group composed of three members (or four members if everybody else has a group mate). 2. Your group is tasked to do the following: a) Journalize the additional transactions. Use Spreadsheet Worksheet tab #1. b) Prepare Statement of Changes in Equity for the calendar year ended December 31, 2021. Use Spreadsheet Worksheet tab #2. c) Assume only the above transactions, prepare a Condensed Statement of Financial Position as of calendar year-end December 31, 2021. Use Spreadsheet Worksheet tab #3.

You were engaged by STATE CORPORATION, a publicly held company whose shares are traded on the Philippine Stock Exchange, to conduct prepare its 2021 Financial Statements. You were told by the company's controller that there were numerous equity transactions that took place in 2021. The Shareholders' equity accounts at December 31, 2020, had the following balances: P540,000 Share capital-Preference, P100 par value, 6% cumulative; 9,000 shares authorized; 5,400 shares issued And outstanding Share capital-Ordinary, P1 par value, 540,000 shares authorized; 360,000 shares issued and outstanding Share premium Retained earnings Total shareholders' equity 360,000 720,000 294,000 P1,914,000 You summarized the following transactions during 2021 and other information relating to the shareholders' equity in your working papers as follows: January 6, 2021 - Issued 13,500 ordinary shares in exchange for land. On the date issued, the shares had a market price of P16.50 per share. The land had a carrying value of P126,000. January 20, 2021 - Issued 10,000 ordinary shares to Atty. M. Maryland as compensation for 500 hours of legal services performed. Atty. Maryland usually bills P400 per hour for legal services. On the date of issuance, the share was trading at P17. February 22, 2021 - Purchased 4,500 of its own ordinary shares to be held as treasury shares for P24 per share. February 28, 2021 - Subscriptions for 12,600 ordinary shares were received at P26 per share, payable 50% down and the balance by March 15. March 15, 2021 - The balance due on 10,800 ordinary shares was received and those shares were issued. April 15, 2021 - The subscriber who defaulted on the 1,800 remaining shares from the subscription was declared delinquent after the call date. The corporation incurred P2,000 advertising expenses. Among the bidders in the auction, Alabama is the highest bidder and paid the offer price. Shares were also issued. August 30, 2021 - Reissued 1,800 treasury shares for P20 per share. September 12, 2021 - Received 1,000 company's own shares from Mr. Florida as donation. September 30,2021 - Sold all of Mr. Florida donated shares for P24 per share November 30, 2021 - Declared a cash dividend of P0.40 per share to all ordinary shareholder of record December 15, 2021. The dividend was paid on December 30, 2021. December 15, 2021 - Declared the required annual cash dividends on preference shares for 2021. No dividends in arrears from the previous years. The dividend was paid on January 15, 2022. December 31, 2021 Closed net income. Revenues were P500,000 while expenses were 248,000. INSTRUCTIONS: 1. Form a group composed of three members (or four members if everybody else has a group mate). 2. Your group is tasked to do the following: a) Journalize the additional transactions. Use Spreadsheet Worksheet tab #1. b) Prepare Statement of Changes in Equity for the calendar year ended December 31, 2021. Use Spreadsheet Worksheet tab #2. c) Assume only the above transactions, prepare a Condensed Statement of Financial Position as of calendar year-end December 31, 2021. Use Spreadsheet Worksheet tab #3