NAME:SCORE:SECTION:PROFESSOR:Problem #9Issuance of SharesB. Sorima Corporation began operations on Jan. 1, 2018. The following transactionsrelating to shareholders' equity occurred in the first two years of the corporation'soperations:2018Authorized the issuance of 2 million shares of P5 par value ordinaryshares and 100,000 shares of P100 par value, 10% cumulativepreference shares.Issued 200,000 shares of ordinary shares for P12 cash per share.Issued 100,000 shares of ordinary shares in exchange for a buildingvalued at P820,000 and merchandise inventory valued at P380,000.Paid P10,000 cash to the corporation's founders for organizationactivities.Jan. 1Jan. 2Jan. 3Jan. 4Jan. 5Issued 12,000 shares of preference shares for P110 cash per share.2019June 4Issued 100,000 shares of ordinary shares for P15 cash per share.Required:1. Prepare the journal entries to record these transactions.2. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2018 andDec. 31, 2019. .3. Prepare a table showing dividend allocations and dividends per share for 2018 and2019 assuming the corporation declared the following cash dividends: 2018,and 2019, P300,000. Accomplish this requirement after studying ChapterP507.4. Prepare the Jan. 2, 2018 journal'entry for the issuance of 200,000 ordinary sharesfor P12 cash per share assuming:a. Ordinary shares is no-par without a stated value.b. Ordinary shares is no-par with a stated value of P10 per share.

Dividends refers to the sum of money distributed from the profits of the company to its…

1. Prepare the journal entries to record these transactions. 2. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2018 and Dec. 31, 2019.. 3. Prepare a table showing dividend allocations and dividends per share for 2018 and 2019 assuming the corporation declared the following cash dividends: 2018 P50,000, and 2019, P300,000. Accomplish this requirement after studying Chapter 7. 4. Prepare the Jan. 2, 2018 journal'entry for the issuance of 200,000 ordinary shares for P12 cash per share assuming: a. Ordinary shares is no-par without a stated value. b. Ordinary shares is no-par with a stated yalue of P10 per share.

1. Prepare the journal entries to record these transactions. 2. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2018 and Dec. 31, 2019.. 3. Prepare a table showing dividend allocations and dividends per share for 2018 and 2019 assuming the corporation declared the following cash dividends: 2018 P50,000, and 2019, P300,000. Accomplish this requirement after studying Chapter 7. 4. Prepare the Jan. 2, 2018 journal'entry for the issuance of 200,000 ordinary shares for P12 cash per share assuming: a. Ordinary shares is no-par without a stated value. b. Ordinary shares is no-par with a stated yalue of P10 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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