Assets: PHP 280,000 (Cash: PHP 210,000; Coffee beans and supplies: PHP 50,000; Accounts receivable: PHP 20,000) Liabilities: PHP 20,000 (Rent payable) Equity: PHP 260,000 (Romeo's capital: PHP 130,000; Juliet's capital: PHP 130,000)
After a year of successful operation, Romeo and Juliet decided to convert their partnership into a corporation. They formed "Romeo and Juliet's Coffee Shop, Inc." and issued 10,000 shares of stock with a par value of PHP 10 per share. The corporation issued a total of 10,000 shares to the public and listed on the stock exchange. Assets: PHP 280,000 (Cash: PHP 210,000; Coffee beans
At the end of the second year, the corporation reported a net income of PHP 250,000. The board of directors decided to declare a cash dividend of PHP 50,000 to shareholders. Assets: PHP 280