Answer required number 1 and give its solution Issuance of SharesA Sorima Corporation began operations on Jan. 1, 2018. The following transactionsrelating to shareholders' equity occurred in the first two years of the corporation'soperations:2018Jan. 1 Authorized the issuance of 2 million shares of P5 par value ordinaryshares and 100,000 shares of P100 par value, 10% cumulativepreference shares.Jan. 2 Issued 200,000 shares of ordinary shares for P12 cash per share.Jan. 3 Issued 100,000 shares of ordinary shares in exchange for a buildingvalued at P820,000 and merchandise inventory valued at P380,000.Jan. 4 Paid P10,000 cash to the corporation's founders for organizationactivities.Jan. 5 Issued 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,P50,000, and 2019, P300,000. Accomplish this requirement after studying Chapter7.4. 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 shareswith a stated value of P10 per share.no-par

Journal Entries A journal entry is the method used to record all individual financial transactions…

A. Sorima Corporation began operations on Jan. 1, 2018. The follow relating to shareholders' equity occurred in the first two years of operations: 2018 Jan. 1 Authorized the issuance of 2 million shares of P5 par va shares and 100,000 shares of P100 par value, 10 % preference shares. Issued 200,000 shares of ordinary shares for P12 cash per Issued 100,000 shares of ordinary shares in exchange f valued at P820,000 and merchandise inventory valued at Jan. 2 Jan. 3 Jan. 4 Paid P10,000 cash to the corporation's founders for activities. Jan. 5 Issued 12,000 shares of preference shares for P110 cash 2019 June 4 Issued 100,000 shares of ordinary shares for P15 cash per Required: 1. Prepare the journal entries to record these transactions. 2. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2019. 3. Prepare a table showing dividend allocations and dividends per sh 2019 assuming the corporation declared the following cash P50,000, and 2019, P300,000. Accomplish this requirement after

A. Sorima Corporation began operations on Jan. 1, 2018. The follow relating to shareholders' equity occurred in the first two years of operations: 2018 Jan. 1 Authorized the issuance of 2 million shares of P5 par va shares and 100,000 shares of P100 par value, 10 % preference shares. Issued 200,000 shares of ordinary shares for P12 cash per Issued 100,000 shares of ordinary shares in exchange f valued at P820,000 and merchandise inventory valued at Jan. 2 Jan. 3 Jan. 4 Paid P10,000 cash to the corporation's founders for activities. Jan. 5 Issued 12,000 shares of preference shares for P110 cash 2019 June 4 Issued 100,000 shares of ordinary shares for P15 cash per Required: 1. Prepare the journal entries to record these transactions. 2. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2019. 3. Prepare a table showing dividend allocations and dividends per sh 2019 assuming the corporation declared the following cash P50,000, and 2019, P300,000. Accomplish this requirement after

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Answer required number 1 and give its solution

Issuance of Shares
A Sorima Corporation began operations on Jan. 1, 2018. The following transactions
relating to shareholders' equity occurred in the first two years of the corporation's
operations:
2018
Jan. 1 Authorized the issuance of 2 million shares of P5 par value ordinary
shares and 100,000 shares of P100 par value, 10% cumulative
preference shares.
Jan. 2 Issued 200,000 shares of ordinary shares for P12 cash per share.
Jan. 3 Issued 100,000 shares of ordinary shares in exchange for a building
valued at P820,000 and merchandise inventory valued at P380,000.
Jan. 4 Paid P10,000 cash to the corporation's founders for organization
activities.
Jan. 5 Issued 12,000 shares of preference shares for P110 cash per share.
2019
June 4
Issued 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 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
with a stated value of P10 per share.
no-par

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