PROBLEM 3 The stockholders equity of Willpower Corporation showed the following data on December 31, 2022: 12% preferred stock, P30 par, 135,000 shares issued and outstanding P 4,050,000 Common stock,...




PROBLEM 3



The stockholders equity of Willpower Corporation showed the following data on December 31, 2022:
12% preferred stock, P30 par, 135,000 shares issued and outstanding P 4,050,000
Common stock, P50 par, 180,000 shares issued and outstanding 9,000,000
Premium on preferred stock 1,080,000
Premium on common stock 3,240,000
Retained earnings 1,395,000
The 2023 transactions of the company affecting its stockholders’ equity are summarized chronologically as follows:
A. Issued 27,000 shares of preferred stock at P40.
B. Issued 94,500 shares of common stock at P70.
C. Retired 5,400 shares of preferred stock at P45.
D. Purchased 13,500 shares of its common stock at P80.
E. Split common stock two for one (par value reduce to P25).
F. Reissued 13,500 shares of treasury stock – common at P50.
G. Stockholders donated to the company 9,000 shares of common stock when shares had a market price of P52. One half of these shares were subsequently issued for P54.
H. Dividends were paid at the end of the calendar year on the common stock at P2 per share and on the preferred stock at the preferred rate.
I. Net income for the year was P2,520,000.








1. Determine the preferred stock as of December 31, 2023.








2. Determine the common stock as of December 31, 2023.















3. Determine the additional paid in capital as of December 31, 2023.









Jun 11, 2022
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