Determine the total shareholders equity at december » Full Grade

Assignment ID: FG133080601

Question – The shareholders’ equity section of INDIA CORPORATION’s statement of financial position as of December 31, 2021, is as follows:

Ordinary share capital (P5 par, 250,000 shares authorized, 137,500 issued and outstanding) P687,500

Share premium 275,000

Total paid-in capital P 962,500

Unappropriated retained earnings P667,500

Appropriated retained earnings 250,000

Total retained earnings 917,500

Total shareholders’ equity P1,880,000

INDIA Corporation had the following shareholders’ equity transactions during 2022:

Jan. 15 Completed the building renovation for which P250,000 of retained earnings had been restricted. Paid the contractor P242,500, all of which is capitalized.

Mar. 3 Issued 50,000 additional ordinary shares for P8 per share.

May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2022, to shareholders of record on June 30, 2022.

June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is P200,000, and retained earnings are to be restricted for that amount.

July 31 Paid the dividend.

Dec. 31 Declared a property dividend to be paid on January 10,2023, to shareholders of record on January 5, 2023. The dividend is to consist of equipment with a carrying value of P150,000. The equipment’s fair value at December 31,2022, is P157,500.

Dec. 31 Reported P442,500 of net income on December 31, 2022, income statement.

Required –

1. Determine the balance in the ordinary share capital account at December 31, 2022?

2. Determine the balance in the share premium account at December 31, 2022?

3. Determine the balance in the unappropriated retained earnings account at December 31, 2022?

4. Determine the total shareholders’ equity at December 31, 2022?