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Determine the unappropriated retained earnings

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Reference no: EM132966924

PROBLEM - Joy Ashliy Company reported the following amounts in the shareholders' equity section of its December 31, 2015 statement of financial position:

10% Preference share, 100 par (10,000 shares authorized, 4,000 issued) 400,000

Ordinary share, 5 par (100,000 shares authorized, 40,000 issued) 200,000

Share Premium 250,000

Retained Earnings 900,000

During 2016, the following transactions transpired concerning shareholders' equity:

a. Paid the annual 10 per share dividend on preference share and a 2 per share dividend on ordinary share. These dividends had been declared on December 31, 2015.

b. Purchased 5,000 shares of its own outstanding ordinary share for 40 share.

c. Reissued 2,000 treasury shares for land valued at 100,000.

d. Issued 4,000 preference shares with detachable warrants. The package sells for 120. The warrants enable the holder to purchase 2,000 ordinary share at 30 per share. Immediately after the issuance of the share, the warrants are selling at 10 per share and the market value of the preference without the warrants is 90.

e. On October 1, 60% of the warrants are exercised. The remaining warrants were not exercised.

f. Declared a 20% share dividend on the outstanding ordinary share when the stock is selling for 45 per share.

g. Issued the share dividend.

h. Net income for the year is 2,400,000.

i. Declared the annual 2016 10 per share dividend on preference share and 2 per share dividend on the ordinary share. These dividends are payable in 2017.

Required - Based from the above data, determine the following as of December 31, 2016:

1. Determine the Preference Share?

2. Determine the Ordinary Share?

3. Determine the Unappropriated Retained Earnings?

4. Determine the Treasury Share?

5. Determine the Total Shareholders' Equity?

Reference no: EM132966924

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