Retained Earnings Mrs. Paz Castro

Statement of Changes in Shareholders’ Equity

• Significant changes in shareholders’ equity should be reported in the period in which they occur.
• May be prepared in columnar format, where each column represents a major shareholders’ equity classification.
• The ending balances of the accounts are presented at the bottom of the statement. These accounts and their related balances compose the shareholders’ equity section of the statement of financial position.

Victory Property Corporation Statement of Changes in Shareholders’ Equity
For the Year Ended December 31, 2013 Preference Shares Ordinary Shares
P100 par P10 par
Share Premium- Ordinary
Balance, Jan. 1 Profit
Cash Dividends on Preference
Cash Dividends on Ordinary
Issue of Ordinary, 5,000 shares
5% Share Dividend on Ordinary, 5,250 shares
P500,000 P1,000,000
P300,000
50,000
5,000
52,500
26,250
Purchase of Treasury Stock
Approp. For Treasury Stock
.
.
.
Victory Property Corporation Statement of Changes in Shareholders’ Equity
For the Year Ended December 31, 2013
Unapprop. Retained Earnings
Approp. Retained Earnings
Treasury
Preference Shares
Total
Balance, Jan. 1
P150,000
P1,950,000
Profit
Cash Dividends on Preference
85,000
(25,000)
85,000
(25,000)
Cash Dividends on Ordinary
(40,000)
(40,000)
Issue of Ordinary, 5,000 shares
5% Share Dividend on Ordinary, 5,250 shares Purchase of Treasury Stock
55,000
(78,750)
(30,000)
(30,000)
Shareholders’ Equity

Share Capital
Preference Shares-P100 par, 10,000 shares authorized, 5,000 shares issued and 4,750 shares outstanding Ordinary Shares-P10 par, 150,000 shares authorized, 110,250 shares issued and outstanding	P1,102,500	P	500,000
Share Premium-Ordinary	331,250		1,433,750
Total Share Capital		P1,933,750
Retained Earnings
Unappropriated	P61,250
Appropriated for Treasury Stock	30,000	91,250
Total Share Capital and Retained Earnings		P2,025,000