Shareholders' Equity Section
The shareholders' equity of Moonlight Corporation at January 2, 2015, appeared below:
8% Preference Shares, P 150 par, 100,000 shares authorized, 20,000 shares issued and outstanding P 3,000,000
Ordinary shares, P 100 par, 200,000 shares authorized, 50,000 shares issued and outstanding P 5,000,000
Share premium - preference P 300,000
Share Premium - Ordinary P 200,000
Retained Earnings P 1,500,000
During 2015 the following transactions occurred:
- Jan 5, issued 6,500 ordinary shares in exchange for a piece of land . The land had a cost of P 500,000. There was no available fair value of shares stock.
- Feb 10, purchased 6,000 ordinary shares for the treasury at P 90 per share.
- Feb 15 shareholders donated P 10,000 cash
- May 7, issued 10,000 preference shares for P 160 per share
- June 29, received subscription to 10,000 ordinary shares at P 120
- Aug 17, received donation from ordinary shareholders, 2,000 ordinary shares
- Sept 11, received full amount from subscribers and issued the shares
- Oct 20, sold 3,000 treasury shares at P 160 per share
- Nov 22, retired 2,000 treasury shares.
- Dec 31, Closed profit of P 450,000
Required:
- Prepare journal entries to record transactions (to be posted online)
- Prepare the December 31, 2015 Shareholders' equity section (yellow paper)
