You are auditing the balance sheet of the Ballares Company on December 31, 2004, which has the following items on the equity side of the balance sheet: (see image below) Determine the total book value of the 40,000 shares of ordinary share Current Liabilities2,858,0003,000,0001,600,000Bonds PayableReserve for Bonds Retirement6% Cumulative Preference Share, P100 par value(entitled to P110 and accumulated dividendsper share in voluntary liquidation). Authorized,30,000 shares; issued, 20,000 shares; in treasury,1,500 sharesOrdinary share, P100 par value, authorized,100,000 shares; issued and outstanding, 40,0001,850,000sharesPremium on preference sharePremium on ordinary shareRetained earnings4,000,000100,000673,0001,312,600The company proposes to finance a plant expansion program by issuing an additional20,000 shares of ordinary share. Ordinary shareholders of record October 1, 2004 werenotified that they will be permitted to subscribe to the new issue at P150 per share up to50% of their holdings. The market value of the share on October 1, 2004, was P172.50.The share goes ex-rights in the market on October 3, 2004.

Shares- The shares are the company's financial assets. The value of the shares fluctuates with the…

You are auditing the balance sheet of the Ballares Company on December 31, 2004, which has the following items on the equity side of the balance sheet: (see image below) Determine the total book value of the 40,000 shares of ordinary share

You are auditing the balance sheet of the Ballares Company on December 31, 2004, which has the following items on the equity side of the balance sheet: (see image below) Determine the total book value of the 40,000 shares of ordinary share

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 14P

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