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Prepare the statement of changes in shareholders equity

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Reference no: EM132973902

Question - AUDITING RETAINED EARNINGS AND DIVIDENDS - The accounts from the shareholders' equity section of the balance sheet of Western Company showed the following at December 31, 2020:

Ordinary share P475,000

Share Premium 6,650,000

Retained Earnings 787,500

Western issued 475,000 shares of the P1 par value Ordinary share on January 1, 2020.

The company also is authorized to issue 500,000 shares of P5 par value, 6% preference share.

During 2021, Western had the following transactions:

Jan. 10 Issued an additional 90,000 shares of Ordinary Share at P17 per share.

Apr. 1 Issued 100,000 shares of preference share at P8 per share.

July 19 The board of directors authorized the appropriation of P295,000 of retained earnings for the purchase of equipment.

Oct. 23 Sold an additional 60,000 shares of preference share at P9 per share.

Dec. 31 Net income for the year was P1,200,000. The board of directors declared a dividend of P623,000 to shareholders of record on January 15, 2022, to be paid on February 1, 2022.

Required - Prepare the statement of changes in shareholders' equity for 2021 using the information given above.

Reference no: EM132973902

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