Question 1. Grizzlies Inc.

was organized on January 2, 2021, with authorized capital stock of 50,000

shares of 10%, P200 par value preferred, and 200,000 shares of no-par, no stated value common.  During
the first 2 years of the company's existence, the following selected transactions took place:

2021
Jan.  2 Sold 10,000 shares of common stock at P16.
2 Sold 3,000 shares of preferred stock at P216.
Mar.  2 Sold common stock as follows: 10,800 shares at P22; 2,700 shares at P25.
Jul. 10 Acquired a nearby piece of land, appraised at P400,000, for 600 shares of preferred stock and
27,000 shares of common. (Preferred stock was recorded at P216, the balance being assigned to
common.)
Dec. 16 Declared the regular preferred dividend and a P1.50 common dividend.
28Paid dividends declared on December 16.
31The Income Summary account showed a credit balance of P450,000.

2022
Feb. 27 Reacquired 12,000 shares of common stock at P19.
Jun.  17 Resold 10,000 shares of the treasury stock at P23.
Jul.   31 Resold all of the remaining treasury stock at P18.
Sep. 30 Sold 11,000 additional shares of common stock at P21.
Dec. 16 Declared the regular preferred dividend and a P0.80 common dividend.
28 Dividends declared on December 16 were paid.
31 The income summary account showed a credit balance of P425,000.
Question 2. In connection with your audit of the Ginebra Corporation, you were able to obtain the
following information pertaining to the corporation’s equity accounts.

Ginebra Corporation has 32,000 shares of P2 par value common stock authorized.  Only 75% of these
shares have been issued, and of the shares issued, only 22,000 are outstanding.  On December 31, 2020,
the stockholders’ equity section revealed that the balance in Paid-In Capital in Excess of Par Value –
Common was P832,000, and the Retained Earnings balance was P220,000.  The Treasury stock was
purchased at an average price of P37.50 per share.

During 2021, Ginebra had the following transactions:

Jan. 15 Ginebra issued, at P55 per share, 1,600 shares of P50 par, 5% cumulative preferred stock;
4,000 shares are authorized

Feb. 01 Ginebra sold 3,000 shares of newly issued P2 par value common stock at P42 per share.

Mar. Ginebra declared a cash dividend on common stock of P0.15 per share, payable on April 30
15 to all stockholders of record on April 1

Apr. 15 Ginebra reacquired 400 shares of its common stock for P43 per share.

Employees exercised 2,000 stock options granted in 2000.  When the options were granted,
each option entitled the employees to purchase 1 share of common stock for P50 per share.  
The share price on the date of grant was also P50 per share.  Ginebra issued new shares to the
employees.

May Ginebra declared a 10% stock dividend to be distributed on June 1 to stockholders of record
01 on May 7.  The market price of the common stock was P50 per share on May 1.

        31 Ginebra sold 300 treasury shares reacquired on April 15 and an additional 400 shares costing
P15,000 that had been on hand since the beginning of the year.  The selling price was P57 per
share.

Sept.15 The semiannual cash dividend on common stock was declared, amounting to P0.15 per
share.  Ginebra also declared the yearly dividend on preferred stock.  Both are payable on
October 15 to stockholders of record on October 1.

Net income for 2021 was P100,000.

PS – 80,000
Comm Stock -63,320
APIC -1,195,680
TS – 64,300
total RE -174,756
Question 3. Ollie Company began its operation in 2020 and has two classes of share capital outstanding:
12% P100 par value preference share and P50 par value ordinary share. Balances on January 1, 2021 are
as follows:

Preference share capital P500,000

Ordinary share capital 2,500,000
Share premium – Preference   200,000
Share premium – Ordinary   500,000
Accumulated profits 2,000,000

*All the preference shares issued and ordinary shares issued were issued as one lot in 2020.

The following reflects the transactions for the year 2021, in chronological order:
a. Issued 20,000 ordinary shares at P70 per share
b. Reacquired, but not retired, 5,000 ordinary shares at P60
c. Ordinary shares were split on a 2 for 1 basis
d. Reissued 3,000 treasury shares at P40
e. Received 10,000 ordinary shares from stockholders as a donation and immediately retired the
same
f. Reported p1,500,000 net income for the year
g. Declared the preferential dividends and p6 dividend per ordinary shares

Total Dividends declared to ordinary shares?

738,000

balance of the OS account as of Dec 31, 2008

3,250,000

Total APIC as of Dec 32,2008

1,380,000

Correct accum profits-unnappro. Bal as of Dec

2,492,000

SHE bal of Dec 31,2008

7,592,000
 Question 4. NDU Corporation has 32,000 shares of P2 par common stock authorized.  Only 75% of these
shares have been issued, and of the shares issued, only 22,000 are outstanding.  On December 31, 2021,
the stockholders’ equity section revealed that the balance in Paid-in Capital in Excess of Par Value –
Common was P832,000, and the Retained Earnings was P120,000.  Treasury stock was purchased at an
average cost of P40 per share.

During 2021 NDU Corporation had the following transactions:

Jan 15 NDU issued, at P52.50 per share, 1,600 shares of P50 par, 4% cumulative preferred stock; 4,000
share are authorized.

Feb 1 NDU sold 3,000 share of newly issued P2 par common stock at P45 per share.

Mar 15 NDU declared a cash dividend on common stock of P0.20 per share, payable on April 30 to all
stockholders of record on April 1.

Apr 15 NDU reacquired 400 shares of its common stock for P38 per share.

        30 Employees exercised 2,000 stock options granted in 1999.  When the option were granted, each
option entitled the employees to purchase 1 share of common stock for P50 per share. The share price on
the grant date was P60 per share.  On April 30, when the market price was P55 per share, NDU issued
new shares to the employees.

May 1 NDU declared a 25% stock dividend to common stockholders to be distributed on June 1 to
stockholders of record May 7.  The market price of the common stock was P50 per share on May 1.

      31 NDU sold 300 treasury shares reacquired on April 15 and an additional 400 shares costing
P16,000 that had been on hand since the beginning of the year.  The selling price was P60 per share.

Sept 15 The semiannual cash dividend on common stock was declared, amounting to P0.20 per share.  
NDU also declared the yearly dividend on preferred stock.  Both are payable on October 15 of record on
October 1.

Net income for 2021 was P150,000.

PS Balance 80,000
Common stock Balance 71,300
APIC -Common stock 1,077,000
APIC-PS 4,000
Div pay common stock 0