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Cabanatuan City
College of Business and Accountancy
SHAREHOLDERS’ EQUITY - A
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SHAREHOLDERS’ EQUITY is the residual interest of owners in the net assets of a corporation measured by the excess
of assets over liabilities. The components of shareholders ‘equity are:
Required: Compute for the amount of total shareholders’ equity that Present should report in its December 31 statement
of financial position.
LEGAL CAPITAL is the portion of paid in capital which cannot be returned to stockholders in any form ( cash,
property or stock dividends) during the lifetime of the corporation.
Required:
1. How much is the legal capital?
2. Assume instead the ordinary shares have no par value but with stated value of p15, how much is the legal capital?
Required: Prepare the necessary journal entries using the memorandum method.
Required: Prepare the necessary journal entry to record the transaction using the memorandum method.
Required: Prepare the necessary journal entry to record the transaction using the memorandum method.