PRUBLEM $32$:

CYPRUS COMPANY began operation on January $1.$ Authorized were $20,000$ shares of $P10$ par value ordinary

shares and $40,000$ shares of $10\%,$ P $100$ par value preference shares. The following transactions involving

shareholders' equity occurred during the first year of operations.

January $1$

Issued $500$ ordinary shares to the corporation promoters in exchange for property valued at $P170,000$ and services valued at P$70,000.$ The property had cost the promoters P$90,0003$ years before and was carried on the promoters' books at P$50,000.$

February $23$ Issued $10,000$ preference shares with a par value of P$100$ per share. The shares were issued at a price of P$150$ per share, and the company paid P$75,000$ to an agent for selling the shares.

March $10$

Sold $3,000$ ordinary shares for P$390$ per share. Issue costs were P$25,000$

Cordillera Career Development College COLLEGE OF BUSINESS EDUCATION AND ADMINISTRATION Buyagan, Poblacion, La Trinidad, Benguet

April $104,000$ ordinary shares were sold under share subscription at P$450$ per share. No shares are issued until a subscription contract is paid in full. No cash was received.

July $14$

Exchanged $700$ ordinary shares and $1,400$ preference shares for a building with a fair market value of P$510,000.$ The building was originally purchased for P$380,000$ by the investors and has a book value of P$220,000.$ In addition, $600$ ordinary shares were sold for P$240,000$ in cash.

August $3$ Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was $P1,400,000.$ Shares were issued for the subscriptions paid in full.

December $1$ Declared a cash dividend of P$10$ per share on preference shares, payable on December $31$ to shareholders of record on December $15,$ and a P$20$ per share cash dividend on ordinary shares, payable on January $5$ of the following year to shareholders of record on December $15.$

$31$ Paid the dividend to preference shareholders.

Net income for the first year of operations was P$600,000$

Based on the receding information, calculate the balances of each of the following accounts:

Preference shares

A$.P1,140,000$

C$.P1,655,000$

B$.P1,000,000$

D$.P1,795,000$

Share premium $-$ preference shares

A$.P425,000$

C$.P515,000$

B$.P90,000$

D$.P545,000$

Ordinary shares

A$.P88,000$

C$.$ P$61,000$

B$.P68,000$

D$.$ P$62,000$

Share premium $-$ ordinary shares

A$.P3,707,000$

C$.P1,920,000$

A$.$ P$3,707,000$

D$.P3,617,000$

Retained earnings

A$.$ P$310,000$

C$.P350,000$

B$.P600,000$

D$.P290,000$