1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries
To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020:
Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares.
20 Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued.
31 A stockholder received 2,000 preferred shares with a market value of P200 201
Feb. 8 - 300 treasury shares were sold for P45,000
20 - A shareholder paid P70,000 for 500 common shares.
28 - 5,000 preferred shares were redeemed at a price of P120 per share
Mar. 1 - 100 treasury shares were sold for P10,000.
Direction:
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances.
2) Journal entries
3) Prepare the shareholders' equity section as of March 31, 2016.
4) For each class of stock, answer the same requirements as in Exercise 13.
Transcribed Image Text:Ity section of the corporation.
13 The following accqunts appear in the trial balance of DAVAO EAGLE Corporation as of
December 31, 2019:
Redeemable Preference Share Capital, par P100, authorized 50,000 P1,700,000
shares
Subscribed Preference Share Capital
Subscription Receivable, Preference Shares
Authorized Ordinary Share Capital, P100 stated value
Unissued Ordinary Share Capital
Ordinary Share Premium
Preference Share Premium
200,000
150,000
1,000,000
500,000
55,000
300,000
60,000
Treasury Shares (500 ordinary shares)
Direction:
For each class of stock, compute for the authorized number of shares, issued shares,
unissued shares, issued and outstanding shares, subscribed shares, still available for
subscription, legal capital.
14. To continue with problem 13, assume the following transactions took place during 2020:
Jan. 10
One half of the subscriptions receivable were collected and certificates of
stock issued for 1,000 shares.
Remaining subscriptions were declared delinquent and the corresponding
chares put up for public auction. Advertising paid, P5,500.
A bidder for 300 shares paid the amount due plus accrued interest of P750
20
25
and the corresponding certificates were issued.
A stockholder received 2,000 preferred shares with a market value of P200
31
Transcribed Image Text:5,000 preferred shares were redeemed at a price of P120
For each class of stock, answer the same requirements as in Exercise 13.
300 treasury shares were sold for P45,000.
Prepare the shareholders' equity section as of March 31, 2016.
preferred and common. Start with the December 31 balances.
A shareholder paid P70,000 for 500 common shares.
100 treasury shares were sold for P10,000.
Feb. 8
20
per share,
28
Mar. 1
Direction:
1)
preferred and common, Start with the December 31 balances.
2)
Journal entries
3)
Prepare the shareholders' equity section as of March 31, 2016.
4)
For each class of stock, answer the same requirements as in Exercise 13.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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