The shareholders' equity of the Rodriguez Corporation on June 30, 2017, is shown below: Share Capital...

 

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The shareholders' equity of the Rodriguez Corporation on June 30, 2017, is shown below: Share Capital Ordinary Shares – P6 par value, 1,000,000 shares authorized, 250,000 shares issued and outstanding Share Premium-Ordinary P1,500,000 820,000 P2,320,000 970,000 Р3,290,000 Total Share Capital Retained Earnings Total Shareholders' Equity Transactions for the next fiscal year were as follows: The board of directors declared a 2-for-1 share split. The board of directors obtained authorization to issue 50,000 shares of P100 par value, 6 % non-cumulative preference shares." Issued 12,000 ordinary shares for a building appraised at P96,000. Purchased 8,000 shares of the corporation's ordinary shares for P64,000. Issued 20,000 preference shares for P100 per share. Sold 5,000 shares of treasury stock for P35,000. Declared cash dividends of P6 per share on preference shares and P.20 per share а. b. с. d. е. f. g. on ordinary shares. h. Date of record. Paid the preference and ordinary shares cash dividends. j. i. Declared a 10% share dividend on ordinary shares. The market value was P10 per share. The share dividend is distributable after the end of the fiscal year. Profit for the year was P340,000. k. Required: 1. Prepare the journal entries to record the transactions. 2. Prepare the statement of retained earnings for the year ended June 30, 2018. 3. Prepare the shareholders' equity section of the statement of financial position as at June 30, 2018. The shareholders' equity of the Rodriguez Corporation on June 30, 2017, is shown below: Share Capital Ordinary Shares – P6 par value, 1,000,000 shares authorized, 250,000 shares issued and outstanding Share Premium-Ordinary P1,500,000 820,000 P2,320,000 970,000 Р3,290,000 Total Share Capital Retained Earnings Total Shareholders' Equity Transactions for the next fiscal year were as follows: The board of directors declared a 2-for-1 share split. The board of directors obtained authorization to issue 50,000 shares of P100 par value, 6 % non-cumulative preference shares." Issued 12,000 ordinary shares for a building appraised at P96,000. Purchased 8,000 shares of the corporation's ordinary shares for P64,000. Issued 20,000 preference shares for P100 per share. Sold 5,000 shares of treasury stock for P35,000. Declared cash dividends of P6 per share on preference shares and P.20 per share а. b. с. d. е. f. g. on ordinary shares. h. Date of record. Paid the preference and ordinary shares cash dividends. j. i. Declared a 10% share dividend on ordinary shares. The market value was P10 per share. The share dividend is distributable after the end of the fiscal year. Profit for the year was P340,000. k. Required: 1. Prepare the journal entries to record the transactions. 2. Prepare the statement of retained earnings for the year ended June 30, 2018. 3. Prepare the shareholders' equity section of the statement of financial position as at June 30, 2018.

Answer rating: 100% (QA)

Answer Answer to 1 All the value in journal entries are calculated in working notes Journal Entries Working Note 1 Board of Directors have declared Share split of 2 for 1 share Currently company have ... View the full answer