How much did the firm assets increase of decrease

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Reference no: EM132741973

The shareholders' equity section of Dela Pena, Inc. At Dec. 31, 2019, is shown below:

Ordinary Shares, P20 par; 500,000 shares authorized; P 4, 000, 000

200,000 shares issued and outstanding

Share Premium 3, 600, 000

Retained Earnings 5, 700, 000

Total Shareholders' Equity P 13, 300, 000

During the month of Jan.2020, the following events occurred:

Jan. 12 The board of directors declared a 2-for-1 ordinary share split. At the time of the split the market price was P120 per share.

Jan. 20 A 5% share dividend was declared and issued by the board of directors. At the time of declaration, the market price of the stock was P55 per share.

Jan. 22 The corporation repurchased 5, 000 shares of its ordinary shares at P54 per share.

Jan. 28 The board of directors declared a cash dividend of P0.45 per share, payable on Feb. 28

Jan. 30 A 20% share dividend was declared and issued. At the time of the declaration, the market price of the stock was P52 per share.

Jan. 31 The profit for the month amounted to P360, 000.

Required: Provide the answers to each of the following questions:

Problem 1. After the share split on Jan.12, what was the amount of total shareholders' equity?

Problem 2. After the share split on Jan.12, what was the balance in the ordinary shares account?

Problem 3. After the share dividend on Jan.20, what's the balance in the retained earnings account?

Problem 4. After the share dividend on Jan.20, what's the amount of the firm's total shareholders' equity?

Problem 5. After the treasury stock purchase, by how much did the firm's assets increase of decrease, if any?

Problem 6. What was the balance in the retained earnings account at the end of January?

Reference no: EM132741973

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