Problem 4.

On Jan. 1, 2020, Ezra Logen Corp. had 6,000,000 authorizes ordinary shares of
P5.00 par, of which 2,000,000 shares were issued and oustanding. The
stockholders' equity on same date showed the following balances:
Ordinary Share Capital ₱ 10,000,000
Share Premium 7,500,000
Retained Earnings 3,250,000

On Jan. 5, Ezra Logen issued at P54 per share, 100,000 shares of P50 par 9%
cumulative, convertible preferences share capital. Ezra Logen had 250,000
authorized prefererence shares.
On Feb 1, Ezra Logen reacquired 20,000 ordinary shares for P16 per share. Ezra
Logen uses the cost method.

On April 30, Ezra Logen had completed an additional public offering of 500,000
ordinary shares with P5 par value. The shares were sold to the public at P12 per
share.
On June 17, Ezra Logen declared a cash dividend of P1 per ordinary share, payable
on July 10 to shareholders of record on July 1. On November 6, Ezra Logen sold
10,000 shares of treasury for P21 per share.
On Dec. 7, Ezra Logen declared the yearly cash dividend on preference share,
payable on January 7, 2021, to shareholders of record on Dec. 31, 2020.

On Jan. 17, 2021, before the books were closed for 2020, Ezra Logen became aware
that the ending inventory on Dec. 31, 2019 was overstated by P200,000.
The after-tax effect on 2019 net income was P140,000. The appropriate correcting
entry was recorded.
After correction of the beginning inventory, net income for 2020 was P2,250,000.

Required:
Prepare a Statement of Changes in Equity for the year ended Dec. 31, 2020.
To be submitted in Google Classroom on or before Oct. 25, 2021, 12 noon.