(1) DRAWING Company provided the following data at year-end:
Authorized share capital
Unissued share capital
Subscribed share capital
Subscription receivable
Share premium
Retained earnings unappropriated
Retained earnings appropriated
Revaluation surplus
Treasury shares, at cost
5,000,000
2,000,000
1,000,000
400,000
500,000
600,000
300,000
200,000
100,000
What total amount of shareholders’ equity should be reported?
(2) COLORING Company held 10,000 shares of P10 par value as treasury reacquired for P120,000. On December 31,
2016, the entity reissued all 10,000 shares for 190,000. What is credited for the excess of the reissue price over
the cost of treasury shares?
(3) LETTERING Company provided the following information at year-end:
Preference share capital, P100 par
Share premium – preference share
Ordinary share capital, P10 par
Share premium – ordinary share
Subscribed ordinary share capital
Retained earnings
Note payable
Subscription receivable – ordinary share
2,300,000
805,000
5,250,000
2,750,000
50,000
1,900,000
4,000,000
400,000
What is the amount of legal capital?
(4) In 2015, PUNISHING Company issued 50,000 shares of P10 par value for P100 per share. In 2016, the entity
reacquired 2,000 shares at P150 per share and immediately canceled these 2,000 shares.
(a) In connection with the retirement of shares, what amount should be debited to share premium?
(b) In connection with the retirement of shares, what amount should be debited to retained earnings?
(5) TOTOY Company had 10,000 shares issued and outstanding on January 1, 2013. On March 15, the entity declared
a 2 for 1 share split when the fair value of share was P80. On December 15, the entity declared a P5 per share cash
dividend. What amount should be reported as dividends?