Question Complete solutions please. 1. Journalize the entries to record the transactions.2. Prepare the statement of changes in shareholders' equity for the year ended JuneJuly 2017, the beginning of the current fiscal year:The following selected accounts appeared in the ledger of. M. Penaflor Corporation onluly 2017, the beginning of the current fiscal year:4% Preference Shares, P50 par, 10,000 sharesauthorized, 7,000 shares issuedShare Premiúm-PreferenceP350,000Ordinary Shares, P20 par, 50,000 shares authorized,28,00025,000 shares issuedShare Premium-OrdinaryRetained Earnings500,00090,000537,000During the year, the corporation completed a number of transactions affecting theshareholders' equity. They are summarized as follows:a. Purchased 2,000 shares of treasury-ordinary for P55,000.b. Sold 500 shares of treasury-ordinary for P16,000.C. Issued 5,000 ordinary shares at P30, receiving cash.d. Sold 1,000 shares of preference 4% share at P52.50.e. Sold 600 shares of treasury-ordinary for P15,600.Declared cash dividends of P2 per share on preference shares and P1 per share onordinary shares.g. Paid the cash dividends.h. The board of directors authorized the appropriation necessitated by the holding oftreasury stock.Required:f.

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Transcribed Image Text: 1. Journalize the entries to record the transactions.2. Prepare the statement of changes in shareholders' equity for the year ended JuneJuly 2017, the beginning of the current fiscal year:The following selected accounts appeared in the ledger of. M. Penaflor Corporation onluly 2017, the beginning of the current fiscal year:4% Preference Shares, P50 par, 10,000 sharesauthorized, 7,000 shares issuedShare Premiúm-PreferenceP350,000Ordinary Shares, P20 par, 50,000 shares authorized,28,00025,000 shares issuedShare Premium-OrdinaryRetained Earnings500,00090,000537,000During the year, the corporation completed a number of transactions affecting theshareholders' equity. They are summarized as follows:a. Purchased 2,000 shares of treasury-ordinary for P55,000.b. Sold 500 shares of treasury-ordinary for P16,000.C. Issued 5,000 ordinary shares at P30, receiving cash.d. Sold 1,000 shares of preference 4% share at P52.50.e. Sold 600 shares of treasury-ordinary for P15,600.Declared cash dividends of P2 per share on preference shares and P1 per share onordinary shares.g. Paid the cash dividends.h. The board of directors authorized the appropriation necessitated by the holding oftreasury stock.Required:f.

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1. Journal EntriesS.NoParticularsAmount in Dr.Amount in Cr.1Treasury Shares A/c    To Cash A/c(Being Treasury shares purchased)55,00055,0002Cash A/c    To Treasury Shares A/c    To Profit on sale of Treasury Shares A/c(Being Treasury shares Sold)16,00013,75022503Ordinary Shares A/cSecurities Premium A/c    To Cash A/c(Being Ordinary shares Issued)100,00050,000150,0004Cash A/c    To Preference Shares A/c    To Profit on sale of Preference Shares A/c(Being Preference shares Sold)52,50050,0002,5005Cash A/cLoss on sale of Treasury Shares A/c    To Treasury Shares A/c(Being Treasury shares Sold)15,60090016,5006Preference Dividend A/cEquity Dividend A/c   To Cash A/c(Being Dividend on preference and ordinary shares paid)12,00030,00042,0002. Statement of changes in shareholders equityParticularsShare CapitalEquity Share CapitalRetained EarningsShare Premium PreferenceShare Premium EquityTotal EquityBalance at 1 July 2017350,000500,000537,00028,00090,0001,505,000Changes in equity for the year 2017 - 2018      Issue of share capital-  100,000-   50,000150,000Sale of share capital-50,000-  -  -  -  -50,000Income for the year-   165,000  165,000Dividends-   -42,000  -42,000Balance at 31 December 2020300,000600,000660,00028,000140,0001,728,000 ...