What is the total balance of SHAREHOLDERS' EQUITY as of December 31, 2020
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
Related questions
Question
What is the total balance of SHAREHOLDERS' EQUITY as of December 31, 2020
![SKIPPY Company reported the following amounts in the equity section of its December 31, 2019
Statement of Financial Position:
Preference shares 8%, P100 par (10,000 shares authorized, 2,000
shares issued)
P 200,000
Ordinary shares - P5 par (100,000 shares authorized, 20,000
shares issued)
100,000
Share premium
125,000
Retained earnings
450,000
Total shareholders' equity
875,000
During 2020, SKIPPY took part in the following transactions concerning equity:
●
Paid the annual 2019 #8 per share dividend on preference shares and a #2 per share dividend on
ordinary shares. These dividends had been declared on December 31,2019.
• Purchased 2,700 shares of its own outstanding ordinary shares for $40 per share.
Reissued 700 treasury shares for land valued at $30,000.
Issued 500 preference shares at $105 per share
·
Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $45
per share
•
Issued the share dividend
•
Declared the annual 2020 8 per share dividend on preference shares and the #2 per share dividend
on ordinary shares. These dividends are payable in 2021.
SKIPPY reported net income of $330,000 for the year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1114b0d1-6d4b-446f-bc9b-a364dae43ee2%2F08fd1aae-ac59-4b1e-89f3-ffe5e37adee4%2Ffwi5ik9_processed.png&w=3840&q=75)
Transcribed Image Text:SKIPPY Company reported the following amounts in the equity section of its December 31, 2019
Statement of Financial Position:
Preference shares 8%, P100 par (10,000 shares authorized, 2,000
shares issued)
P 200,000
Ordinary shares - P5 par (100,000 shares authorized, 20,000
shares issued)
100,000
Share premium
125,000
Retained earnings
450,000
Total shareholders' equity
875,000
During 2020, SKIPPY took part in the following transactions concerning equity:
●
Paid the annual 2019 #8 per share dividend on preference shares and a #2 per share dividend on
ordinary shares. These dividends had been declared on December 31,2019.
• Purchased 2,700 shares of its own outstanding ordinary shares for $40 per share.
Reissued 700 treasury shares for land valued at $30,000.
Issued 500 preference shares at $105 per share
·
Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $45
per share
•
Issued the share dividend
•
Declared the annual 2020 8 per share dividend on preference shares and the #2 per share dividend
on ordinary shares. These dividends are payable in 2021.
SKIPPY reported net income of $330,000 for the year
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Corporate Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305653535/9781305653535_smallCoverImage.gif)
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Corporate Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305653535/9781305653535_smallCoverImage.gif)
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning