On January 1, 2019, Penn Company began operations by issuing at P15 per share one-half

of the 950,000 ordinary shares of P1 par value that had been authorized for
issue. In addition, the entity had 500,000 authorized preference shares of P5 par
value.
During 2019, the entity had P1,025,000 of net income and declared P230,000 of dividend.
During 2020,the entity had the following transactions:
· Issued 100,000 ordinary shares for P 17 per share.
· Issued 150,000 preference shares for P8 per share.
· Authorized the purchase of a custom-made machine to be delivered in January
2021 . The entity restricted P300,000 of retained earnings for the purchase of the
machine.
· Issued additional 50,000 preference shares for P9 per share.

· Reported P 1,215,000 of net income and declared on December 31,2020 a

dividend of P635,000 to shareholders of record on January 15,2021to be paid on
February 1,2021.

1. What amount should bc reported as total shareholders' equity on December 31,2019?

7,920,000
2. What amount should be reported as total shareholders' equity on December 31,2020?
12,150,000

Hello Corporation was organized on January 1, 2013, with an authorization of 1,000,000

ordinary shares with a par value of P5 per share.
During 2013, the corporation had the following equity
transactions: Jan. 4 - Issued 200,000 shares @
P5 per share.
April 8 - Issued 100,000 shares @ P7 per share.
June 9 - Issued 30,000 shares @ P10 per share
July 29 - Purchased 50,000 shares @ P4 per
share.
Dec. 31 - Sold 50,000 shares held in treasury @ P8 per share.

REQUIRED:
Jan 4 5 -5 = 0 -
Apr 8 100,000 x 2 = 200,000 200,000
Jun 9 30,000 x 5 = 150,000 150,000
Jul 29 4-5 = Null -
Dec 31 50,000 x 4 = 200,000 200,000
550,000
What should be the total Share Premium as of December 31, 2012?