Question Overview

Alpha Corporation had the following equity transactions at the beginning of 2020, its first year of

operations:

A. The company issued 20,000 ordinary shares (P50 stated value) and 8,000 preference shares

(P100 par value) for a lump-sum amount P2.5M. The prevailing fair values of ordinary shares

and preference shares on the date of issuance was at P66 per share and P110 per share,

respectively.

B. Additional 5,000 ordinary shares and 2,000 preference shares were subscribed at P70 per

share and P120 per share, respectively. 20% of the subscriptions price for both ordinary and

preference shares remained outstanding as of December 31, 2020. The receivable balance

from ordinary shares were collectible within the next 12 months, while the receivable balance

from preference shares are non-current.

C. There were no other transactions affecting the company’s issued and subscribed shares during

the year.

D. A partial list of the accounts and ending account balances taken from the post-closing trial

balance of Alpha Corporation on December 31, 2020 is shown below:

Ordinary shares ?

Preference shares ?

Ordinary shares subscribed ?

Preference shares subscribed ?

Share premium – Ordinary shares ?

Share premium – Preference shares ?

Subscriptions receivable – Ordinary shares ?

Subscriptions receivable – Preference shares ?

Bonds payable 220,000

Long-term investment in shares 210,000

Premium on bonds payable 30,000

Share premium from treasury stock transactions 24,000

Additional paid-in capital – bond conversion option 15,000

Accum. unrealized holding gain on financial asset at fair value

through other comprehensive income/losses

113,000

Accum. revaluation surplus/reserves 450,000

Accum. remeasurement loss on accumulated benefits obligation and

plan assets

95,000

Accum. foreign exchange translation reserves, debit 100,000

Accum. hedging reserves, credit 315,000

Ordinary share options outstanding 15,000

Ordinary share warrants outstanding 5,000

Treasury shares, 2,000 ordinary shares at cost 120,000

Accumulated profits – appropriated for treasury shares ?

Accumulated profits – appropriated for plant expansion 100,000

Accumulated profits – unappropriated 450,000

Accumulated profits – debt repayment 100,000

Donated capital 220,000

Required: Determine the adjusted balance of the following as of December 31, 2020:

1. Total additional paid-in capital?

2. Total contributed capital?

3. Total stockholders’ equity?

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