SECTION:PROFESSOR:problem #26Positionfollowing selected accounts appeared in the ledger of M. Penaflor Corporation on4% Preference Shares, P50 par, 10,000 sharesauthorized, 7,000 shares issuedShare Premium-PreferenceOrdinary Shares, P20 par, 50,000 shares authorized,25,000 shares issuedShare Premium-OrdinaryRetained EarningsDuring the year, the corporation completed a number of transactions affecting theshareholders' equity. They are summarized as follows:a. Purchased 2,000 shares of treasury-ordinary for P55,000.b. Sold 500 shares of treasury-ordinary for P16,000.Issued 5,000 ordinary shares at P30, receiving cash.d. Sold 1,000 shares of preference 4% share at P52.50.e. Sold 600 shares of treasury-ordinary for P15,600.f. Declared cash dividends of P2 per share on preference shares and P1 per share onordinary shares.g. Paid the cash dividends.h. The board of directors authorized the appropriation necessitated by the holding oftreasury stock.Required:1. Journalize the entries to record the transactions.2. Prepare the statement of changes in shareholders' equity for the year ended June30, 2018. The profit for the year was P165,000.3. Prepare the shareholders' equity section of the statement of financial position as ofJune 30, 2018.

NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

a. Purchased 2,000 shares of treasury-ordinary for P55,000. b. Sold 500 shares of treasury-ordinary for P16,000. C. Issued 5,000 ordinary shares at P30, receiving cash. charor of nroforonco 1% charo at P52 50

a. Purchased 2,000 shares of treasury-ordinary for P55,000. b. Sold 500 shares of treasury-ordinary for P16,000. C. Issued 5,000 ordinary shares at P30, receiving cash. charor of nroforonco 1% charo at P52 50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding.

A: Solution: Option (c). 750,000 is the answer. Earnings per share = (Net income - preferred…

Q: The following information relates to Continental Bhd.: RM'000 Ordinary shares 9% bonds, redeemable…

A: The capital of a firm consists of multiple sources including equity and debt. The weighted average…

Q: 1,000 shares of common stock with a par value of $5 is sold for $8. Which of the following is…

A: Journal entries are the building blocks of accounting, which is the act of recording the economic or…

Q: em 3 aurnalize the following transactions: cash at $12 per share. Journal entry: Journal entry: 3.…

A: Issue of Shares: Shares that have been issued are those that the owners have elected to sell in…

Q: An investor purchased 542 shares of common stock, $24 par, for $18,970. Subsequently, 111 shares…

A: A gain/loss is a situation in which the amount of proceeds is more/less than the cost. In the above…

Q: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be…

A: Issue of common stock is one of the ways in which the companies can raise funds for financing the…

Q: Khalid Bin Ahammed company issues 600,000 shares worth OMR 1 at a price of OMR 1.200 per share. How…

A: Share Premium on issue of shares: The share Premium is the amount which is above the value of share…

Q: XYZ Inc. issued 6,000 shares of $100 par value stock for $700,000 cash. The total amount of…

A: The total amount that would be reported in contributed capital in excess of par value is calculated…

Q: 4. At the beginning of current years, Erza Company was organized with authorized capital of 100,000…

A: Share premium is the amount that arises on issuing shares at a price above the par value. The par…

Q: An investor purchased 509 shares of common stock, $25 par, for $19,851. Subsequently, 108 shares…

A: When the sale value of shares is greater than the cost of shares, it results in gain on sale of…

Q: A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500…

A: Revenue is the total amount realized from selling the said number of shares. Shares are the…

Q: The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share 2,000…

A: Introduction: Generally companies issues two types of shares - Preference shares and common shares.…

Q: An investor purchased 690 shares of common stock, $21 par, for $29,670. Subsequently, 102 shares…

A: The treasury stock includes the own shares of the company purchased from the sale of treasury…

Q: A shareholder owns 20,000 shares costing P 1,000,000. Subsequently, the shareholders receive P 4,000…

A: 1. Stock Dividend - Stock Dividend is the type of dividend issue by the organization other than…

Q: The shareholders’ equity section of Banana Co. revealed the following: Ordinary Shares, Php50 par…

A: There are 2 common methods to buyback or retire the shares: 1. Cost Method 2. Constructive…

Q: GRAPES Company provided the following data for the year: a. Sold 25,000 preference shares, 12%, P50…

A: Stock Split: Face value of the shares of companies is split in stock split and there is no…

Q: Successfully signed in as vipulkumarmakwana8801. X Stock $14,000, debtors $20,000, creditors…

A: To find the total assets of the firm, we need to use the given information and ratios to calculate…

Q: An investor purchased 500 shares of common stock (which is less than 20% of the outstanding stock),…

A: Gain or loss on sale of common stock will be accounted for by taking into account the cost to…

Q: An investor purchased 499 shares of common stock, $24 par, for $21,457. Subsequently, 117 shares…

A: First, find out the purchase price of 1 share. Purchase price per share = Total Purchased price /…

Q: 2a. A corporation sold 11,000 shares of its $10 par value common stock at a cash price of $14 per…

A: Issuing shares is one of method used by companies to collect the funds from the public in the…

Q: On June 30, HK Corporation was formed with the capital of 200.000 TL by issuing 200.000 shares of…

A: Unpaid capital Unpaid capital is the capital which the company has raised by issuing of shares or…

Q: O NO3 The f 2quity shar. (2,00,000 sh Pheforencet (So.00D share Retained Ear 7.5% Debentur Presently…

A: Given Book Value Equity Share Capital ₹ 2,000,000.00 Preference Share Capital ₹…

Q: Given the following for the Titan Company; the company began operations on 1/1/1. Preferred Stock,…

A: Cumulative preference shares are the class of preference shares where the preference shareholders…

Q: A corporation has 4,000 shares of 10% noncumulative non participating preference shares outstanding,…

A: The total dividends would be first apportioned to preference shareholders and any remaining amount…

Q: 2. White Co. issues 100 shares of $4 par common stock and 250 shares of $100 par preferred stock for…

A: Additional paid in capital is also written as APIC, which represents the amount received in excess…

Q: 5. ders' equity a

A: 1.

Q: Mall Company issued 60.000, P50 par value, ordinary shares and 20.000, P100 par value, preference…

A: Solution: Fair market value of ordinary shares = 60000*P100 = P6,000,000 Fair market value preferred…

Q: During 20x2, the following transactions related to the capital share of the ABC Corp occurred: Jan…

A: There are mainly two types of dividends : Cash dividend and Stock dividend. In cash dividend,…

Q: An investor purchased 505 shares of common stock, $23 par, for $19,190. Subsequently, 106 shares…

A: Calculation of gain / loss in the sale of shares Investor purchased 505 shares for $19190 at $38…

Q: operanion anfered Oweng BOCT quity. Victory's articles of incorporation authorized the iaue of…

Q: PURPLE Corporation was corporated at the beginning of e current year and provided the lowing…

A: 1) Shares Issued are those shares which are issued to the public in large, and it also includes…

Q: 12. ABC Co. reported the following shareholders' equity at year end: 7% Preference share, 25,000…

A: There are broadly two types of shares issued by a company; 1) Preference shares and 2) Common…

Q: Leonardo paid a total of $12,500 for stock that was $4 per share. If he sold all his shares for…

A: An investor can make profits from investment made in stocks by two ways as either holding the stocks…

Q: 1. Ian holds 100 shares in Big Bank Pty Ltd. The company paid a dividend of $4 per share (franked to…

A: A franked dividend is created to remove the issue of double taxation of dividend for investors. It…

Q: Y Corporation is organized with authorized common stock of 10,000 shares without par value. If Y…

A: Stocks are issued by the companies in order to raise fund for the organisation. There are various…

Question

SECTION:
PROFESSOR:
problem #26
Position
following selected accounts appeared in the ledger of M. Penaflor Corporation on
4% Preference Shares, P50 par, 10,000 shares
authorized, 7,000 shares issued
Share Premium-Preference
Ordinary Shares, P20 par, 50,000 shares authorized,
25,000 shares issued
Share Premium-Ordinary
Retained Earnings
During the year, the corporation completed a number of transactions affecting the
shareholders' equity. They are summarized as follows:
a. Purchased 2,000 shares of treasury-ordinary for P55,000.
b. Sold 500 shares of treasury-ordinary for P16,000.
Issued 5,000 ordinary shares at P30, receiving cash.
d. Sold 1,000 shares of preference 4% share at P52.50.
e. Sold 600 shares of treasury-ordinary for P15,600.
f. Declared cash dividends of P2 per share on preference shares and P1 per share on
ordinary shares.
g. Paid the cash dividends.
h. The board of directors authorized the appropriation necessitated by the holding of
treasury stock.
Required:
1. Journalize the entries to record the transactions.
2. Prepare the statement of changes in shareholders' equity for the year ended June
30, 2018. The profit for the year was P165,000.
3. Prepare the shareholders' equity section of the statement of financial position as of
June 30, 2018.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

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

On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale? $300 long-term capital gain. $300 long-term capital loss. $300 short-term capital gain. $300 short-term capital loss
Please show your solution in good accounting form. Thank you! Book value per share The shareholders’ equity of DEF Corporation on December 31 of the current year is shown below. Dividends are in arrears for two years. 6% Preference Share Capital, ₱100 par, 10,000 authorized, issued 6,000 shares ₱ 600,000 Ordinary Share Capital No-par, ₱25 stated value, authorized 20,000 shares; issued 10,000 shares of which 1,000 shares are in the treasury 250,000 Share Premium – Ordinary, no-par 46,000 Share Premium – Preference 30,000 Accumulated Profits 132,000 Appropriated for Plant Expansion 35,000 Appropriated for Treasury Shares 30,000 Treasury Shares – ordinary no-par, 1,000 sh. at cost 30,000 Requirements: Compute for the book value per share for: Compute for the outstanding shares Compute the amount of the outstanding shares Compute the excess over par Compute for the book value per share
What are the journal entries for the following 3 transactions?
ABC Company issued 1,000,000 equity shares of OMR 1 each. The company called up OMR 0.500baisa and the company received the entire amount except on 50,000 shares on which call money has not been received. The called-up capital of the company is a. OMR 975,000 b. OMR 950,000 c. OMR 475,000 d. OMR 500,000
The following trial balance has been extracted from the books of Abraham as at 31st March 2023 UGX 000 UGX 000 Administrative expense 250 Distribution cost 295 Share capital (all ordinary shares of UGX 1 each 270 Share premium 80 Revaluation reserve 20 Dividend 27 Cash at bank and hand 3 Receivables 233 Interest paid 25 Dividend received 15 Interest received 1 Land and buildings at cost (land 380, building 100) 480 Land and building acc. Dep 30 Plant and machinery 400 Plant and machinery acc. Dep 170 Retained earnings account (at April 2022 235 Purchases 1260 Sales 2165 Inventory at 1 April 2022 140 Trade payables 27 Bank loan 100 Total 3113 3113 Additional Information Inventory at 31st March 2023 was valued at a cost UGX 95000. Include in this…
2
A shareholder owns 20,000 shares costing P 1,000,000. Subsequently, the shareholders receive P 4,000 shares in lieu of cash dividend of P 120 per share. The Market value is P 150.What is the amount of dividend income? a. Zerob. 3,000,000c. 2,400,000d. 600,000
Use good accounting form in solution
The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share, 2,000 shares outstanding P200,000; Ordinary Shares, 5,000 shares outstanding P100,000, Preference share premium P20,000; Ordinary share premium P25,000; Retained Earnings P450,000. If 350 shares of Preference Shares were retired at P125/share, how much will be credited to Cash?
Plz solve it’s timed
3. Vance Refrigeration repurchased 1,000 shares of their own common stock for $20 per share. They then resell 500 shares for $30 per share. How much should APIC be debited or credited for the resale? a. Credit for $10,000 b. Credit for 5,000 c. Debit for 5,000 d. APIC will not be affected by the resale.