LONG QUIZ
The shareholder’s equity of ABC Corp showed the following data on Dec. 31, 2024
Preference share capital, P30 par, 145,000 shares issued & P 4,350,000
outstanding
Ordinary share capital, P50 par, 190,000 shares issued & 9,500,000
outstanding
Share premium – preference 1,080,000
Share premium – ordinary 3,240,000
Retained Earnings 2,395,000
The 2025 transactions of the company affecting its equity are summarized categorically as
follows:
Jan 1: The company issued 30,000 ordinary shares in exchange for land. The shares
have a fair value of P58 per share while the fair value of land cannot be
determined.
Account Title Debit Credit
Land 1,740,000
Ordinary Share Capital 1,500,000
Share Premium – Ordinary 240,000
Feb 3: Issued 25,000 ordinary shares at P65
Account Title Debit Credit
Cash 1,625,000
Ordinary Share Capital 1,250,000
Share Premium – Ordinary 375,000
Feb 16: Issued 20,000 preference shares at P45
Account Title Debit Credit
Cash 900,000
Preferred Share Capital 600,000
Share Premium – Preferred 300,000
Mar 5: The company issued 5,000 ordinary shares and 5,000 preference shares at a
basket price of 700,000. At the time of issuance, the fair value of the ordinary
shares is P60 and the fair value of the preference shares is P40.
Account Title Debit Credit
Cash 700,000
Ordinary Share Capital 250,000
Share Premium – Ordinary 170,000
Preferred Share Capital 150,000
Share Premium – Preferred 130,000
April 10: Purchased 25,000 ordinary shares at P58 each
Account Title Debit Credit
Treasury Shares 1,450,000
Cash 1,450,000
Retained Earnings – unappropriated 1,450,000
Retained Earnings – appropriated 1,450,000
May 1: Re-issued 5,000 treasury shares at P62 each
Account Title Debit Credit
Cash 310,000
Treasury Shares 290,000
Share Premium – Treasury 20,000
Retained Earnings – appropriated 290,000
Retained Earnings – unappropriated 290,000
May 20: Re-issued 10,000 treasury shares at a total amount of P560,000
Account Title Debit Credit
Cash 560,000
Share Premium – Treasury 20,000
Treasury Shares 580,000
Retained Earnings – appropriated 580,000
Retained Earnings – unappropriated 580,000
May 25: Re-issued the remaining shares at P60 each
Account Title Debit Credit
Cash 600,000
Treasury Shares 580,000
Share Premium – Treasury 20,000
Retained Earnings – appropriated 580,000
Retained Earnings – unappropriated 580,000
August 20: Purchased 20,000 ordinary shares at P65 each
Account Title Debit Credit
Treasury Shares 1,300,000
Cash 1,300,000
Retained Earnings – unappropriated 1,300,000
Retained Earnings – appropriated 1,300,000
Determine the ending balance of the following as of Dec. 31, 2025:
a. Ordinary Share Capital
Beginning balance 9,500,000
Jan 1 1,500,000
Feb 3 1,250,000
Mar 5 250,000
TOTAL 12,500,000
b. Preferred Share Capital
Beginning balance 4,350,000
Feb 16 600,000
Mar 5 150,000
TOTAL 5,100,000
c. Share Premium – ordinary
Beginning balance 3,240,000
Jan 1 240,000
Feb 3 375,000
Mar 5 170,000
TOTAL 4,025,000
d. Share Premium – preferred
Beginning balance 1,080,000
Feb 16 300,000
Mar 5 130,000
TOTAL 1,510,000
e. Total Share Premium
Share Premium – 4,025,000
ordinary
Share Premium – 1,510,000
preference
Share Premium – 20,000
treasury
TOTAL 5,555,000
f. Total Shareholder’s Equity
Ordinary Share Capital 12,500,000
Preferred Share Capital 5,100,000
Total Share Premium 5,555,000
Retained Earnings 2,395,000
Treasury Shares (1,300,000)
TOTAL 24,250,000
