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05 - PERFORMANCE TASK - Pp2

The document outlines financial calculations for two corporations, Fabi Corporation and Recayo Corporation, focusing on share premiums from preference and ordinary shares. It details the share capital, share premium, and total shareholder's equity at year-end for Recayo Corporation. Key figures include a share premium of P 800,000 for preference shares and P 1,200,000 for ordinary shares, with total shareholder's equity reported at P 8,750,000.

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Mark Venes Pepito
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43 views2 pages

05 - PERFORMANCE TASK - Pp2

The document outlines financial calculations for two corporations, Fabi Corporation and Recayo Corporation, focusing on share premiums from preference and ordinary shares. It details the share capital, share premium, and total shareholder's equity at year-end for Recayo Corporation. Key figures include a share premium of P 800,000 for preference shares and P 1,200,000 for ordinary shares, with total shareholder's equity reported at P 8,750,000.

Uploaded by

Mark Venes Pepito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

NAME: Pepito,Mark Venes DATE: 03-02-2025 SCORE:

WORK ON SHEETS

Case 1: Fabi Corporation

1.What amount should be reported as share premium from preference share?


Answer:
Proceeds from preference share P 4,800,000
Less: PV of preference share (4,000,000)
Preference share premium P 800,000
2. What amount should be reported as share premium from ordinary shares?
Answer:
Proceeds from ordinary share P 3,200,000
Less: PV from ordinary share (2,000,000)
Ordinary share premium 1,200,000

Case 2: Recayo Corporation

Date Shares Share Share Shareholder’s


Capital Premium Equity
January 01 P 30,000 P 3,000,000 P 1,500,000 P 4,500,000
February 01 2,000 200,000 50,000 250,000
March 01 (5,000) - (600,000)
October 31 - - 1,100,000 1,100,000

November 15 (32k x 2) 64,000 -

(5k x 2) 10,000 -

December 15 20,000 1,000,000 500,000 1,500,000

December 31 - - - 2,000,000

TOTAL P 74,000 P 4,200,000 P 3,150,000 P 8,750,000

Issue price of bonds P 6,000,000


Market price of bonds (4,900,000)
Share premium P 1,100,000
3. What amount should be reported as share capital at year-end?
Answer:
January 01 (30,000 shares x 100 par value) P 3,000,000
February 01 (2,000 shares x 100 par value) 200,000
December 15 (20,000 x 50 par value) 1,000,000
Share capital at year-end P 4,200,000

4.What amount should be recognized as a share premium at year-end?


Answer:
Jan. 01 ( 30,000 shares x 50) P 1,500,000
Feb. 01 ( 250,000-200,000) 50,000
Oct. 31 Conversion Feature 1,100,000
Dec. 15 ( 20,000 x 25) 500,000
Share Premium at year-end P 3,150,000

5.What is the total shareholder’s equity at year-end?


Answer: P 8,750,000

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