Answered: ABC Company was organized on January 1,…

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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ABC Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value.

January 15 -Sold 30,000 shares at P150 per share.

February 14 -Issued 2,000 shares for legal services with a fair value of P300,000. The shares on this date are quoted at P160 per share.

March 27 -Purchased 5,000 treasury shares at a cost of P12 per share.

October 31 -Issued P4,000,000 convertible bonds at 110. The bonds are quoted at 97 without the conversion feature.

November 5 -Declared a 2-for-1 share split when the market value of the share was P160.

December 17 -Sold 10,000 shares at P75 per share.

What total amount should be recognized as share premium on December 31, 2022?

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The following is a partial trial balance for General Lighting Corporation as of December 31, 2016: Credits Account Title Debits Sales revenue 2,350,000 80,000 Interest revenue Loss on sale of investments 22,500 Cost of goods sold Loss from write-down of inventory due to obsolescence Selling expenses General and administrative expenses 1,200,300 200,000 300,000 150,000 Interest expense 90,000 300,000 shares of common stock were outstanding throughout 2016. Income tax expense has not yet been recorded. The income tax rate is 40%. Required: 1. Prepare a single-step income statement for 2016, including EPS disclosures. 2. Prepare a multiple-step income statement for 2016, including EPS disclosures.
Please show all work and answers: 1. On January 1st, ZYX company purchased 1,000 shares of its own stock at $37 per share. On January 20th, ZYX later reissues or sells 199 shares of treasury stock for $12 per share. On January 20th, the balance in Additional paid in capital-Treasury stock is credit balance of $0. What is the amount debited to Retained earnings on January 20th? 2. ABC issues 14,000 shares of common stock to investors on January 1 for cash, with the investors paying cash of $24 per share. The par value of the stock is $5 per share. What is the amount applied to additional paid in capital? 3. On January 1st, ABC company issues a stock dividend of 18%. ABC has 101,000 shares outstanding with a par value of $1. ABC also has 210,000 shares authorized. The market price per share January 1st is $32. What is number of new shares issued for stock dividend? 4. On January 1st, ZYX company purchased 1,200 shares of its own stock at $36 per share. On January 20th, ZYX later reissues…
During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2024. Share issue costs were $1,500. One year from the issue date (July 1, 2025), the corporation retired 10% of the shares for $39,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2 per share dividend on December 1, 2024, the payment of the dividend on December 31, 2024, and the retirement of the shares. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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