Preference shares, P10 par; 90,000 shares authorized and issued, of which 9,000 are in the treasury...

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Preference shares, P10 par; 90,000 shares authorized and issued, of which 9,000 are in the treasury costing P135,000 and shown as an asset Ordinary shares, P4 par value; 900,000 shares authorized, of which 675,000 shares are issued and outstanding Share premium (P5 per share on preference shares issued in 2018) Allowance for doubtful accounts receivable Reserve for depreciation Reserve for fire insurance Accumulated profits Total shareholders' equity P900,000 2,700,000 450,000 18,000 Audit notes: a. 4,500 treasury shares were sold for P18 per share on August 30, 2020. Yakult Corp. credited the proceeds to the Preference share account. The treasury shares as of December 31, 2019 were acquired in one purchase in 2019. b. The preference shares carries an annual dividend of P1 per share. The dividend is cumulative. As of December 31, 2019, unpaid cumulative dividends amounted to P5 per share. The entire accumulation was liquidated in June 14, by issuing to the preference shareholders 81,000 ordinary shares. c. A cash dividend of P1 per share was declared on December 1, 2020 to preference shareholders of record December 15, 2020. The dividends are payable on January 15, 2021. d. At December 31, 2020, the Allowance for Doubtful Accounts Receivable and Reserve for Depreciation had balances of P37,000 and P1,575,000, respectively. e. Om March 1, 2020, the Reserves for fire insurance was increased by P900,000; Accumulated Profits was debited. f. On December 31, 2020, the Reserves for fire insurance was decreased by P45,000 which represents the carrying value of a machine destroyed by fire on that date. Fire clean-up costs of P9,000 does not appear in the records. 1,260,000 297,000 3,375,000 P9,000,000 g. The December 31, 2019 Accumulated profits consists of the following: Donated land from a stockholder Gains from treasury stock transactions Earnings retained in the business Required: Determine the adjusted balance at December 31, 2020 of the following: 1. Net profit for the year 2. Additional paid-in capital 3. Appropriated accumulated profits 4. Unappropriated accumulated profits 5. Total stockholders' equity 675,000 76,500 2,623,500 3,375,000 h. Unadjusted net income for the year ended December 31, 2020 was P1,946,250 per company's books. Preference shares, P10 par; 90,000 shares authorized and issued, of which 9,000 are in the treasury costing P135,000 and shown as an asset Ordinary shares, P4 par value; 900,000 shares authorized, of which 675,000 shares are issued and outstanding Share premium (P5 per share on preference shares issued in 2018) Allowance for doubtful accounts receivable Reserve for depreciation Reserve for fire insurance Accumulated profits Total shareholders' equity P900,000 2,700,000 450,000 18,000 Audit notes: a. 4,500 treasury shares were sold for P18 per share on August 30, 2020. Yakult Corp. credited the proceeds to the Preference share account. The treasury shares as of December 31, 2019 were acquired in one purchase in 2019. b. The preference shares carries an annual dividend of P1 per share. The dividend is cumulative. As of December 31, 2019, unpaid cumulative dividends amounted to P5 per share. The entire accumulation was liquidated in June 14, by issuing to the preference shareholders 81,000 ordinary shares. c. A cash dividend of P1 per share was declared on December 1, 2020 to preference shareholders of record December 15, 2020. The dividends are payable on January 15, 2021. d. At December 31, 2020, the Allowance for Doubtful Accounts Receivable and Reserve for Depreciation had balances of P37,000 and P1,575,000, respectively. e. Om March 1, 2020, the Reserves for fire insurance was increased by P900,000; Accumulated Profits was debited. f. On December 31, 2020, the Reserves for fire insurance was decreased by P45,000 which represents the carrying value of a machine destroyed by fire on that date. Fire clean-up costs of P9,000 does not appear in the records. 1,260,000 297,000 3,375,000 P9,000,000 g. The December 31, 2019 Accumulated profits consists of the following: Donated land from a stockholder Gains from treasury stock transactions Earnings retained in the business Required: Determine the adjusted balance at December 31, 2020 of the following: 1. Net profit for the year 2. Additional paid-in capital 3. Appropriated accumulated profits 4. Unappropriated accumulated profits 5. Total stockholders' equity 675,000 76,500 2,623,500 3,375,000 h. Unadjusted net income for the year ended December 31, 2020 was P1,946,250 per company's books.