ASYNCHRONOUS CLASS 10.04.

2022: STOCKHOLDERS EQUITY

During May 2022, Glenn Inc., was organized with 3,000,000 authorized shares of P10 par value
ordinary shares, and 300,000 of its ordinary shares were issued for P3,300,000. Net income
through December 31, 2022, was P125,000.
On July 3, 2023, Glenn issued 500,000 of its ordinary shares for P6,250,000. A 5% share
dividend was declared on October 2, 2023 and issued on November 6, 2023, to shareholders of
record on October 23, 2023. The market value of the ordinary shares was P11 per share on the
declaration date. Glenn’s net income for the year ended December 31, 2023, was P350,000.
During 2024, Glenn had the following transactions:
1. In February, Glenn reacquired 30,000 of its ordinary shares for P9 per share. Glenn uses
the cost method to account for treasury shares.
2. In June, Glenn sold 15,000 of its treasury shares for P12 per share.
3. In September, each shareholder was issued (for each share held) one right to purchase
two additional ordinary shares for P13 per share. The rights expire on December 31,
2024.
4. In October, 250,000 rights issues were exercised when the market value of the ordinary
share was P14 per share.
5. In November, 400,000 rights issues were exercised when the market value of the
ordinary share was P15 per share.
6. On December 15, Glenn declared its first cash dividend to shareholders of P0.30 per
share, payable on January 10, 2025, to shareholders of record on December 31, 2014.
7. On December 21, in accordance with the applicable law, Glenn formally retired 10,000
of its treasury shares and had them revert to an unissued shares. The market value of
the ordinary share was P16 per share on this date.
8. Net income for 2022 was P800,000.00

Required:
Prepare a schedule of all transactions affecting the share capital (share and peso amounts0,
additional paid-in capital, retained earnings, and the treasury shares (shares and peso amounts)
and the amounts that would be included in Glenn’s balance sheet at December 31, 2022, 2023
and 2024, as a result of the above transactions. Show supporting computations in good form.

--Goodluck--