a. Prepare journal entries b. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018. Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, $100 par value preference shares and 1.5 million shares of no- par, $5 stated value ordinary shares. The ff. transactions occurred during 2018: Feb. 2) 24,000 ordinary shares were sold to a group of investors at $24 per share. Feb 15) 5,500 preference share were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fair market value of $795,000. The preference shares was not actively traded. Apr. 30) 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at $31 a share. All parties agreed that this represented the value of the lawyer's services. Nov. 20) Additionally 7,000 ordinary share were issued at $45 per share. Nov. 30) 1,400 ordinary shares were repurchased at $35 per share. The shares are to be held in treasury. Dec. 15) Additionally 1,000 preference share were issued at $125 a share. Dec. 30) The firm sold 600 shares of stock held in treasury at a price of $41 per share. Dec. 31) Preference dividends were declared and paid in cash. URGENT HELP!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

^{a. Prepare journal entries}

^{b. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018.}

Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, $100 par value preference shares and 1.5 million shares of no- par, $5 stated value ordinary shares. The ff. transactions occurred during 2018:

Feb. 2) 24,000 ordinary shares were sold to a group of investors at $24 per share.

Feb 15) 5,500 preference share were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fair market value of $795,000. The preference shares was not actively traded.

Apr. 30) 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at $31 a share. All parties agreed that this represented the value of the lawyer's services.

Nov. 20) Additionally 7,000 ordinary share were issued at $45 per share.

Nov. 30) 1,400 ordinary shares were repurchased at $35 per share. The shares are to be held in treasury.

Dec. 15) Additionally 1,000 preference share were issued at $125 a share.

Dec. 30) The firm sold 600 shares of stock held in treasury at a price of $41 per share.

Dec. 31) Preference dividends were declared and paid in cash.

URGENT HELP!

SECTION
2. Assuming that the profit for the year amounted to P450,000, prepare the
Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, P100 par
value preference shares and 1.5 million shares of no-par, P5 stated value ordinary
5,500 preference shares were issued to an individual in exchange for a
24,000 ordinary shares were sold to a group of investors at P24 per
Problem #16
Feb. 2
share.
Feb. 15
narcel of land to be held for future development. The land has a fair
market value of P795,000. The preference shares was not actively
traded.
2,500 ordinary shares were issued to a lawyer in exchange for services
rendered in forming the corporation. The stock was currently trading
at P31 a share. All parties agreed that this represented the value of the
lawyer's services.
Apr. 30
Nov. 20
Additional 7,000 ordinary shares were issued at P45 per share.
Nov. 30
1,400 ordinary shares were repurchased at P35 per share. The shares
are to be held in treasury.
Dec. 15
Additional 1,000 preference shares were issued at P125 a share.
Dec. 30
The firm sold 600 shares of the stock held in treasury at a price of P41
per share.
Dec. 31
Preference dividends were declared and paid in cash.
Required:
* Prepare the journal entries to record these transactions.
2018.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions