Problem 1: The shareholders' equity of JAV Corporation as of January 1, 2020 are as follows:...

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Problem 1: The shareholders' equity of JAV Corporation as of January 1, 2020 are as follows: Common shares, P10 par, 300,000 shares Share premium Retained earnings P3,000,000 300,000 1,250,000 During the year, the company reacquired and retired 10,000 shares for P12 per share. These shares were originally issued at P11 per share. Net income of the corporation amounted to P500,000, and dividends of P100,000 were declared. Required: 1. How much is the retained earnings as of December 31, 2020? 2. How much is the total shareholders' equity as of December 31, 2020? Problem 2:VON Corporation has 60,000 shares outstanding. These shares have a fair value of P15 and a par value of P10 per share. The corporation declared stock dividends during the year. The capital structure of the company immediately before the stock issuance are as follows: Common shares, P10 par Share premium Retained earnings P600,000 100,000 1,000,000 Required: 1. Assuming a 10% bonus issue: a. Provide the journal entry on the date of declaration. b. Compute the retained earnings immediately after declaration. Compute the share premium immediately after declaration. C. 2. Assuming a 20% bonus issue: a. Provide the journal entry on the date of declaration. b. Compute the retained earnings immediately after declaration. c. Compute the share premium immediately after declaration. Problem 3: On July 19, 2020, ELN Corporation declared 10,000 shares of its equity investments held at FVPL as property dividends to its shareholders of record on September 30, 2020. The dividends are payable on December 27, 2020. The fair value of the equity investments are as follows: July 19 Sept 30. CS Scanned with Car Dec 27 P30 per share P33 per share P35 per share Required: 1. Provide the journal entry on July 19, 2020. 2. Provide the journal entry on Dec 27, 2020 Problem 1: The shareholders' equity of JAV Corporation as of January 1, 2020 are as follows: Common shares, P10 par, 300,000 shares Share premium Retained earnings P3,000,000 300,000 1,250,000 During the year, the company reacquired and retired 10,000 shares for P12 per share. These shares were originally issued at P11 per share. Net income of the corporation amounted to P500,000, and dividends of P100,000 were declared. Required: 1. How much is the retained earnings as of December 31, 2020? 2. How much is the total shareholders' equity as of December 31, 2020? Problem 2:VON Corporation has 60,000 shares outstanding. These shares have a fair value of P15 and a par value of P10 per share. The corporation declared stock dividends during the year. The capital structure of the company immediately before the stock issuance are as follows: Common shares, P10 par Share premium Retained earnings P600,000 100,000 1,000,000 Required: 1. Assuming a 10% bonus issue: a. Provide the journal entry on the date of declaration. b. Compute the retained earnings immediately after declaration. Compute the share premium immediately after declaration. C. 2. Assuming a 20% bonus issue: a. Provide the journal entry on the date of declaration. b. Compute the retained earnings immediately after declaration. c. Compute the share premium immediately after declaration. Problem 3: On July 19, 2020, ELN Corporation declared 10,000 shares of its equity investments held at FVPL as property dividends to its shareholders of record on September 30, 2020. The dividends are payable on December 27, 2020. The fair value of the equity investments are as follows: July 19 Sept 30. CS Scanned with Car Dec 27 P30 per share P33 per share P35 per share Required: 1. Provide the journal entry on July 19, 2020. 2. Provide the journal entry on Dec 27, 2020

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