The shareholders equity section of Tanners company in January 1. 2021 showed the following
Ordinary share, P100 par, 200,000 shares authorized, 60,000 shares issued
P 6,000,000
Share premium
1,200,000
Retained Earnings
2,500,000
During the year, Tanner had the following transactions;
a. In February, Tanner reacquired 4,000 shares for P110 per share.
b. In June, Tanner sold 2,000 shares of its treasury share for P120 per share.
c. In September, each shareholder was issued for each share held one stock right to purchase
two additional shares of ordinary for P130 per share. The rights expire on December 31, 2021.
d. In October, 10,000 stock rights were exercised when the market value of the ordinary share
was P160 per share.
e. On December 15, 2021, Tanner declared its first cash dividend to shareholders of P15 per
share, payable on January 14, 2022, to shareholders of record on December 31, 2021.. On
f. December 23, Tanner formally retired 1,000 treasury shares.
g. Net income for the years was P1.100,000.
Required: Determine the following:
1) How much is the ordinary share on December 31, 2021 statement of financial position?
2) How much is the share premium on the treasury shares on 31, 2021 statement of
financial position? December
3) How much is the total share premium on December 31, 2021 statement of financial
position?
4) How much is the retained earnings unappropriated on December 31, 2021 statement of
financial position?
5) How much is the total shareholders' equity on December 31, 2021 statement of financial
position?