Problem 4On December 29, 2018, Blue Company was registered at the Securities and ExchangeCommission with 100,00 authorized shares of P100 par value. The following were Blue'stransactions:December 29, 2018May 14, 2019August 9, 2019December 31, 2019Issued 40,000 shares at P105 per share.Purchased 600 of its ordinary shares at P110 per share.400 treasury shares were resold at P95 per share.Profit for 2019 is P830,000. Dividends paid P200,000.34. What is the total outstanding shares?35. What is the balance of treasury shares?36. How many shares are entitled to receive dividends?37. What is the total shareholders' equity?Problem 5Partners A & B have capital balances of P600,000 and P400,000 and share profits and lossesin the ratio of 3:2, respectively, before the admission of C. With the consent of B, A sells one-halfof his equity to C, with C paying A the amount of P350,000.38. What is A's capital balance after the admission of C?39. What is the total partnership capital after the admission of C?Problem 6Antonio_and Tony are partners with capital balances of P300,000 and P250,000 sharing profitsand losses 3:1 respectively. They agreed to admit Anton as partner. Anton invests P150,000 fora 40% interest in the firm. Anton and Tony transfer part of their capital to Anton as a bonus.40. What is Antonio's capital after Anton's admission?41. What is the total partnership capital after Anton's admission?

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38. What is A's capital balance after the admission of C? 39. What is the total partnership capital after the admission of C?

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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Question

Problem 4
On December 29, 2018, Blue Company was registered at the Securities and Exchange
Commission with 100,00 authorized shares of P100 par value. The following were Blue's
transactions:
December 29, 2018
May 14, 2019
August 9, 2019
December 31, 2019
Issued 40,000 shares at P105 per share.
Purchased 600 of its ordinary shares at P110 per share.
400 treasury shares were resold at P95 per share.
Profit for 2019 is P830,000. Dividends paid P200,000.
34. What is the total outstanding shares?
35. What is the balance of treasury shares?
36. How many shares are entitled to receive dividends?
37. What is the total shareholders' equity?
Problem 5
Partners A & B have capital balances of P600,000 and P400,000 and share profits and losses
in the ratio of 3:2, respectively, before the admission of C. With the consent of B, A sells one-half
of his equity to C, with C paying A the amount of P350,000.
38. What is A's capital balance after the admission of C?
39. What is the total partnership capital after the admission of C?
Problem 6
Antonio_and Tony are partners with capital balances of P300,000 and P250,000 sharing profits
and losses 3:1 respectively. They agreed to admit Anton as partner. Anton invests P150,000 for
a 40% interest in the firm. Anton and Tony transfer part of their capital to Anton as a bonus.
40. What is Antonio's capital after Anton's admission?
41. What is the total partnership capital after Anton's admission?

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