Problem 9 -1 Computation of Total Shareholders' Equity

Contributed Capital:
Legal Capital
10% Non Cumulative Preference, Participating Preference
Share Capital , par value P100 , issued 3,000 shares 300,000
Ordinary Share Capital, no par value,, issued 3,000 shares 312,000
Subscribed Preference Share- 500 shares 50,000
Less: Subscription Receivable - Preference (20,000) 30,000
Ordinary Share Dividend Distributable 31,000
Total Legal Capital 673,000
Additional Paid In Capital
Share Premium - Preference 20,000
Total Contributed Capital 693,000

Accumulated Profits
Free 105,000
Appropriated - Contingencies 30,000
Treasury Shares 10,000 40,000 145,000
Total 838,000
Less: Treasury Shares - Ordinary (10,000)
Total Shareholders' Equity 828,000

Problem 9 -2 Computation of Total Reserves, Contributed Capital , Accumulated Profits, Shareholders' Equity
Contributed Capital:
Legal Capital
6% Preference Share Capital, Non Cumulative and Non
Participating, P100 par value, issued 4,500 shares 450,000
Ordinary Share Capital, No Par P50 stated value, issued 6,000 sh 300,000
Subscribed Preference Share Capital 200,000
Less: Subscriptions Receivable - Preference (50,000) 150,000
Subscribed Ordinary Share Capital 100,000
Less: Subscriptions Receivable - Ordinary (60,000) 40,000
Share Dividends Distributable - Preference 25,000
Total Legal Capital 965,000
Additional Paid In Capital (Reserves)
Share Premium - Preference 10,000
Share Premium - Ordinary 12,000
Share Premium - Preference Treasury Shares 5,000
Share Premium - Donated Ordinary Shares 8,000
Total Additional Paid In Capital (Reserves) 35,000
Total Contributed Capital 1,000,000
Accumulated Profits
Free (P280,000 - P30,000-P40,000) 215,000
Appropriated - Treasury Shares 15,000
Sinking Fund 50,000 65,000 280,000
1,280,000
Less: Treasury Shares - Preference (15,000)
Total Shareholders' Equity 1,265,000