PROTON Corporation had the following shareholders' equity account balances at December 31, 2022: 10% Convertible preference...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PROTON Corporation had the following shareholders' equity account balances at December 31, 2022: 10% Convertible preference shares (P100 par value; 100,000 Shares authorized, 40,000 share issued and outstanding) Ordinary shares (P10 par value; 200,000 shares authorized, 84,000 shares issued) Subscribed ordinary shares Subscription Receivable Share Premium Retained Earnings Total Less: Treasury ordinary shares (4,000 shares) Total Shareholders' Equity 1. The subscribed ordinary shares account is composed of 10,000 shares subscribed at P13 per share. The subscription contract required a cash down payment equal to 60% of the subscription price, with the balance due on February 1, 2023. Transactions in 2023: 2. 3. 4. 5. P4,000,000 840,000 100,000 6. 7. 52,000 968,000 15,000,000 P20,948,000 44,000 P20,904,000 On February 1, 2023, the 8,000 ordinary shares were issued according to subscription contract Because of default by a subscriber, 2,000 shares were not issued. All payments made by the subscriber were forfeited in favor of the Company. On March 1, 2023, 2,000 preference shares were converted to ordinary shares. One preference share is convertible into two ordinary shares. At the time of conversion, the preference shares had a market value of P125 while the ordinary shares had a market value of P25 per share. On April 1, 2023, 92,000 share rights were issued to the ordinary shareholders permitting the purchase of two new shares of ordinary share in exchange for one right and P15 cash. On April 25, 2023, 67,500 stock rights were exercised when the market price of PROTON's ordinary shares was P20 per share. Marianne issued new shares to settle the transaction. The remaining 24,500 rights were not exercised and thus expired. On September 30, 2023, 3,000 treasury shares were reissued at P20 per share. On January 15, 2024, before the accounting records were closed for 2023, PROTON became aware that the rent income for the year ended December 31, 2023 was understated by P400,000. The after tax-effect on the 2023 net income was P280,000. The appropriate correcting entry was recorded the same day. After correcting the rent income, net income for 2023 was P2,500,000. Cash dividends are declared for preference and ordinary shares on April 30 and October 31. Semi- annual cash dividends for ordinary shares are P1 per share. Questions: Based on the above data, determine the following as of December 31, 2023: 11. Preference shares 12. Ordinary shares 13. Total share premium 14. Retained earnings-unappropriated 15. Total shareholders' equity PROTON Corporation had the following shareholders' equity account balances at December 31, 2022: 10% Convertible preference shares (P100 par value; 100,000 Shares authorized, 40,000 share issued and outstanding) Ordinary shares (P10 par value; 200,000 shares authorized, 84,000 shares issued) Subscribed ordinary shares Subscription Receivable Share Premium Retained Earnings Total Less: Treasury ordinary shares (4,000 shares) Total Shareholders' Equity 1. The subscribed ordinary shares account is composed of 10,000 shares subscribed at P13 per share. The subscription contract required a cash down payment equal to 60% of the subscription price, with the balance due on February 1, 2023. Transactions in 2023: 2. 3. 4. 5. P4,000,000 840,000 100,000 6. 7. 52,000 968,000 15,000,000 P20,948,000 44,000 P20,904,000 On February 1, 2023, the 8,000 ordinary shares were issued according to subscription contract Because of default by a subscriber, 2,000 shares were not issued. All payments made by the subscriber were forfeited in favor of the Company. On March 1, 2023, 2,000 preference shares were converted to ordinary shares. One preference share is convertible into two ordinary shares. At the time of conversion, the preference shares had a market value of P125 while the ordinary shares had a market value of P25 per share. On April 1, 2023, 92,000 share rights were issued to the ordinary shareholders permitting the purchase of two new shares of ordinary share in exchange for one right and P15 cash. On April 25, 2023, 67,500 stock rights were exercised when the market price of PROTON's ordinary shares was P20 per share. Marianne issued new shares to settle the transaction. The remaining 24,500 rights were not exercised and thus expired. On September 30, 2023, 3,000 treasury shares were reissued at P20 per share. On January 15, 2024, before the accounting records were closed for 2023, PROTON became aware that the rent income for the year ended December 31, 2023 was understated by P400,000. The after tax-effect on the 2023 net income was P280,000. The appropriate correcting entry was recorded the same day. After correcting the rent income, net income for 2023 was P2,500,000. Cash dividends are declared for preference and ordinary shares on April 30 and October 31. Semi- annual cash dividends for ordinary shares are P1 per share. Questions: Based on the above data, determine the following as of December 31, 2023: 11. Preference shares 12. Ordinary shares 13. Total share premium 14. Retained earnings-unappropriated 15. Total shareholders' equity
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided 11 Preference shares P4000000 No change as only ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these finance questions
-
Trask Corporation (a fictional company) had the following shareholders equity account balances at December 31, 20X0: Common stock...
-
Dakota Corporation had the following shareholders equity account balances at December 31, 2018: Preferred stock...
-
Refer to the information in BE4-7 for Hébert Company. Prepare the correcting journal entries. Information in BE4-7 1. A collection of cash on account from a customer for $750 was recorded as a...
-
PricingOne of the 4 P's Being up to date with current events is an important part of becoming a business professional. In marketing, it is part of an important responsibility to continuously scan the...
-
On January 31, 2018, The Hershey Company acquired Amplify Snack Brands, Inc., its largest business acquisition to date. Access Hersheys 2018 financial statements and media reports near the time of...
-
Repeat the calculations of Example 6.3, but for \(80 \mathrm{~mol} \%\) of the liquid distilled. Data From Example 6.3:- Suppose the liquid of Example 6.1 [50 mol% n-heptane (A), 50 mol% n-octane...
-
Metal Accessories manufactures auto roof racks in a two- stage process that includes shaping and plating. Steel alloy is the basic raw material of the shaping process. The steel is molded according...
-
Abbey Lee is driving north to a dance competition for 3 hours at 46 miles per hour. Meanwhile, leaving from the same place, Cathy is driving to a different dance competition 2 hours south at 43 miles...
-
Deborah and her husband have Marvin have taxable income of $39,627 before calculating the taxable portion of Deborahs social security benefits. How much of deborahs 14000 social security benefits are...
-
Why is online documentation becoming more important?
-
Given Yt = 0Xt + Yt1, what is the short-run effect of a one-unit change in X? What is the long-run impact (multiplier) for the model?
-
Which of the following positions benefit if the stock price increases? a. Long position in a call b. Short position in a call c. Long position in a put d. Short position in a put
-
In what way does the Koyck transformation resolve problems often associated with distributed lag models?
-
What is the difference between a European option and an American option? Are European options available exclusively in Europe and American options available exclusively in the United States?
-
Q: Make System Sequence Diagram on any 3 use-cases from the following scenario: A client wishes to develop a COVID-19 Tracer App. The app should automatically track and store contacts IDs of two...
-
Determine whether the lines are parallel, perpendicular, or neither. 2x + 3y = -12, 2y - 3x = 8
-
Nike Inc. is one of the worlds largest sellers of athletic footwear and athletic apparel. The following information is from Nikes annual report. Note 7: Redeemable Preferred Stock NIAC is the sole...
-
Brower Corporation owns a manufacturing plant in the country of Oust. On December 31, 2017, the plant had a book value of $5,000,000 and an estimated fair value of $8,000,000. Oust's government has...
-
A feature of top executive pay at Krispy Kreme Doughnuts, Inc., is its compensation recovery policy. The policy allows Krispy Kreme to take back annual or long-term incentive compensation paid to...
-
Label each of the following statements true, false, or uncertain. Explain briefly. a. If the nominal exchange rate is fixed, the real exchange rate is fixed. b. When domestic inflation equals foreign...
-
Consider a country operating under fixed exchange rates. The IS curve is given by equation (20.1) a. Explain the term \(\left(i^{*}-\pi^{e}ight)\). Why does the foreign nominal interest rate appear...
-
Policy choices when the real exchange rate is "too high" and the nominal exchange rate is fixed An overvalued real exchange rate is a rate such that domestic goods are too expensive relative to...
Study smarter with the SolutionInn App