Prepare the statement of changes in shareholders

Assignment Help Financial Accounting

Reference no: EM133036369

Problem Solving. Answer the following problems with a group of three members.

1. Given is the cash ledger of SGG Company for December 2020. Prepare the cash flow statement of the company using the direct method.

11/30	Beginning balance	P 126,400	12/01	Taxes and licenses	P 8,000
12/05	Additional investment	30,000	12/04	Payment for 13'h month of employees	41,000
12/10	Cash Sales	15,000	12/08	Payment of accounts payable	13,000
12/12	Gain from sale of old equipment	3,500	12/15	Payment for new equipment	26,000
12/20	Collection of account sales	22,000	12/17	Payment for cash purchases	14,500
12/23	Borrowed funds from LandBank	20,000	12/21	Payment for insurance	6,000
12/27	Collection of notes receivable	10,200	12/29	Payment for interest	5,500
12/30	Interest income	3,000	12/29	Payment for rent	10,000
			12/29	Payment for salaries	36,000
			12/29	Owner's withdrawal	15,600

2. The accounts listed below were taken from the general ledger of the LigoKaNa Corporation on June 30, 2020. Each account has a normal balance.

Ordinary Shares	P 1,300,000	Share Premium - Preference	P 325,000
Subscribed Ordinary Shares	100,000	Share Premium - Ordinary Treasury Shares	17,500
Ordinary Shares Dividend Distributable	70,000	Donated Capital	62,500
Treasury Stock - Ordinary (3,000 shares)	117,500	Retained Earnings:
Share Premium - Ordinary	2,075,000	Unappropriated	1,870,000
7% Preference Shares	250,000	Appropriated for Plant Expansion	125,000
7% Preference Shares - Subscribed	25,000

Additional information:

a. Preference share has a par value of P50 per share. LigoKaNa was authorized to issue 10,000 shares. The preference shares is cumulative and participating.

b. Ordinary share has a par value of P5 per share. LigoKaNa was authorized to issue 500,000 shares.

Required: Prepare the shareholders' equity section of Ligoka Corporation's June 30, 2020 statement of financial position.

3. The shareholders' equity T-accounts of When September Ends, Inc. for the year ended Dec. 31, 2020, are as follows:

Share Premium - Ordinary
Jan. 1 Balance

Mar. 7 Issued 27,000 shares

480,000

324,000

Aug. 7	Purchases 4,500 shares	216,000	I
		Retained Earnings
Mar. 31	Dividends	37,500	Jan. 1	Balance	5,220,000
Jun. 30	Dividends	37,500	Nov. 1	Appropriation for Plant Expansion	1,000,000
Sept. 30	Dividends	37,500	Dec. 31	Appropriation for Treasury Shares	216,000
Dec. 31	Dividends	37,500	Dec. 31	Closing (profit)	765,000

Prepare the Statement of Changes in Shareholders' Equity for the year ended Dec. 31, 2020.

Reference no: EM133036369

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