B$]$ The equity section of SKM Corporation's statement of financial position as of December $31,2012$ is as follows:

Equity

Share capital ordinary, $$5$ par value; authorized, $2,000,000$ shares;

issued, $400,000$ shares $$2,000,000$

Share premium ordinary $850\mathrm{.}000$

Retained earnings $3\mathrm{.}000\mathrm{.}000$

Sum total $$5,850\mathrm{.}000$

The following events occurred during $2016$:

$1.$ Jan. $5-10,000$ shares of authorized and unissued ordinary shares were sold for $$8$ per share.

$2.$ Jan. $16-$ Declared a cash dividend of $20$ cents per share, payable February $15$ to shareholders of record on February $5.$

$3.$ Feb. $10-20,000$ shares of authorized and unissued ordinary shares were sold for $$12$ per share.

$4.$ March $1-$ A $30\%$ share dividend was declared and issued. Fair value per share is currently

$$15.$

$5.$ April $1-$ A two$-$for$-$one split was carried out. The par value of the shares was to be reduced to $$2\mathrm{.}50$ per share. Fair value on March $31$ was $$18$ per share.

$6.$ July $1-$ A $15\%$ share dividend was declared and issued. Fair value is currently $$10$ per share.

$7.$ Aug. $1-$ A cash dividend of $20$ cents per share was declared, payable September I to stockholders of record on August $21.$

Required

Determine the following balances as at December $31,2023.$ You must show all of your workings.

i$.$ Number of ordinary shares issued

ii$.$ Total par value of ordinary shares issued

iii. Ordinary share premium

iv$.$ Retained earnings

Answer rating: 100% (QA)

SKM Corporation Equity Balances as of December 31 2023 Starting Point December 31 2012 Ordinary Shares Issued400000 shares Ordinary Share Premium85000... View the full answer