question archive Shown below is the information affecting shareholders' equity section of the Statement of Financial Position of RSB Corporation at the end of the current year: Share Capital 12% Preference Share Capital P50 par value authorized 20
Shown below is the information affecting shareholders' equity section of the Statement of Financial Position of RSB Corporation at the end of the current year: Share Capital 12% Preference Share Capital P50 par value authorized 20
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Shown below is the information affecting shareholders' equity section of the Statement of Financial Position of RSB Corporation at the end of the current year:
Share Capital
12% Preference Share Capital P50 par value authorized 20.000 shares
Issued 360,000
Subscribed 180.000
P540.000
Ordinary Share Capital P50 par value authorized 40,000 shares
Issued 500,000
Subscribed 70,000
P570,000
Reserves
Share Premium - Preference 54,000
Share Premium - Ordinary 82,000
P136.000
Retained Earnings : P200,000
Total Shareholders' Equity: P1.446,000
Among the assets of the corporation appear the following items:
Subscription Receivable - Preference 20,000
Subscription Receivable - Ordinary P60,000
Determine the total shareholders' equity.
Determine the Legal capital
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| Total Shareholders' Equity | 1,366,000.00 |
| Total Legal Capital | 1,110,000.00 |
Step-by-step explanation
| Requirement 1: |
| Issued Preference Share Capital | 360,000.00 | |
| Add: Subscribed Preference Share Capital | 180,000.00 | |
| Less: Subscription Receivable - Preference | 20,000.00 | |
| Preference Share Capital | 520,000.00 | 520,000.00 |
| Issued Ordinary Share Capital | 500,000.00 | |
| Add: Subscribed Ordinary Share Capital | 70,000.00 | |
| Less: Subscription Receivable - Ordinary | 60,000.00 | |
| Ordinary Share Capital | 510,000.00 | 510,000.00 |
| Reserves: | ||
| Share Premium - Preference | 54,000.00 | |
| Share Premium - Ordinary | 82,000.00 | |
| Total Reserves | 136,000.00 | 136,000.00 |
| Retained Earnings | 200,000.00 | |
| Total Shareholders' Equity | 1,366,000.00 |
| Note: | The subscription receivable is a deduction from the related subscribed share capital. However, subscription receivable collectible within one year is shown as a current asset. Since the subscription receivable is not specified if collectible within one year or not. It should be shown as a deduction on Total Shareholder's Equity. |
| Requirement 2: |
| Issued Preference Share Capital | 360,000.00 |
| Subscribed Preference Share Capital | 180,000.00 |
| Issued Ordinary Share Capital | 500,000.00 |
| Subscribed Ordinary Share Capital | 70,000.00 |
| Total Legal Capital | 1,110,000.00 |
| Note: | In the case of par value share capital, the legal capital is the aggregate par value of all shares issued and subscribed. |
