Joy Ashliy Company reported the following amounts in the shareholders' equity section Of its December 31, 2020, statement of financial position:
Preference share, P 100 par (10,000 shares authorized, 4,000 shares issued - P 400,000
Ordinary share, P5 par (100,000 shares authorized 40,000 shares issued - P200,000
Share premium - P250,000
Retained earnings - P900,000
TOTAL = 1,750,000
During 2021' the following transactions transpired concerning shareholders' equity:
1) paid the annual P10 per share dividend on preference share and a P2 per share dividend on ordinary share. These dividends had been declared onDecember 31, 2020.
2) purchased 5,000 shares of its own outstanding ordinary share for P40 per share
3) Reissued 2,000 treasury shares for land valued at P 100,000.
4) Issued 4,000 preference shares with detachable warrants. The package sellsfor P 120. The warrants enable the holder to purchase 2,000 ordinary shares at P30 per share. Immediately after the issuance of the share, the warrantsare selling at P10 per share and the market value of the preference withoutthe warrants is P90.
5) On October 1, 60% of the warrants are exercised. The remaining warrants were not exercised.
6) Declared a 20% share dividend on the outstanding ordinary share when thestock is selling for P45 per share.
7) Issued the share dividend.
8) Net income for the year is P2,400,000
9) Declared the annual 2021 P10 per share dividend on preference share and the P2 per share dividend on the ordinary share. These dividends are payable in 2022.
- How much is the balance of the Preference share on December 31, 2021statement of financial position?