Ordinary share capital, P2 par Share premium-ordinary Share premium-treasury Retained earnings Treasury shares (2.420 shares) ollowing transactions occurred in 2023: P 360.000 3,640,000 45,000 649,378 (145,200)

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Chapter10: Stockholder's Equity
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Problem 4
The shareholders' equity of Malaysia's December 31, 2022, statement of financial position follows:
P 360,000
Ordinary share capital, P2 par
Share premium-ordinary
Share premium-treasury
Retained earnings
3,640,000
45,000
649,378
Treasury shares (2,420 shares)
(145,200)
The following transactions occurred in 2023:
January 15
Malaysia reissued 1,300 treasury shares for P40 per share. The 2,420 treasury shares
on hand at December 31, 2022, were purchased in one block in 2021.
February 1
Sold 180, P1,000, 9% bonds due February 1, 2023, at P185,400 with one detachable
share warrant attached to each bond. The fair value of the bonds without the warrants
is P171,000. The detachable warrants have a fair value of P50 each and expire on
February 1, 2024. Each warrant entitles the holder to purchase 10 ordinary shares at
P40 per share.
March 6
2,800 ordinary shares were subscribed at P44 per share. 40% of the subscription was
collected immediately.
March 20 The balance due on 2,400 shares was received and those shares were issued.
November 1 110 share warrants were exercised.
Malaysia's net income for 2023 was P950,000.
Based on the preceding information, determine the correct December 31, 2023, balance of each of the
following:
1. Ordinary share capital
2. Share premium-ordinary
3. Share premium-treasury
4. Total retained earnings
5. Treasury shares
6. Total stockholders' equity
Transcribed Image Text:Problem 4 The shareholders' equity of Malaysia's December 31, 2022, statement of financial position follows: P 360,000 Ordinary share capital, P2 par Share premium-ordinary Share premium-treasury Retained earnings 3,640,000 45,000 649,378 Treasury shares (2,420 shares) (145,200) The following transactions occurred in 2023: January 15 Malaysia reissued 1,300 treasury shares for P40 per share. The 2,420 treasury shares on hand at December 31, 2022, were purchased in one block in 2021. February 1 Sold 180, P1,000, 9% bonds due February 1, 2023, at P185,400 with one detachable share warrant attached to each bond. The fair value of the bonds without the warrants is P171,000. The detachable warrants have a fair value of P50 each and expire on February 1, 2024. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share. March 6 2,800 ordinary shares were subscribed at P44 per share. 40% of the subscription was collected immediately. March 20 The balance due on 2,400 shares was received and those shares were issued. November 1 110 share warrants were exercised. Malaysia's net income for 2023 was P950,000. Based on the preceding information, determine the correct December 31, 2023, balance of each of the following: 1. Ordinary share capital 2. Share premium-ordinary 3. Share premium-treasury 4. Total retained earnings 5. Treasury shares 6. Total stockholders' equity
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