APTER 5: SPECIAL TOPICS ON15. On January 2, 2020 Small Company issued 5 shares in exchangeeeach ordinary share of Big Company. The fair value of Big Company'sshares is P275.The Statement of Financial Position of the combining entitiesimmediately before the combination show the following:BigCompany12,000SmallCompany6,500Assets2,5005,800LiabilitiesShare Capital100 ordinary shares80 ordinary sharesRetained earningsTotal liabilities and equity1,0002,0003,0004,2006,50012,000On January 2, 2020, Small Company's identifiable assets andliabilities have fair values of P7,000 and P2,500, respectively.The resulting goodwill in the reverse acquisition assuming 100% ofBig Company's shares were exchanged for Small Company's share is:a. P500b. P1,000с. Р1,500d. P1,250

Goodwill - When ownership of a company is transferred as a continuing concern, goodwill is a type of…

Answered: APTER 5: SPECIAL TOPICS ON 15. On…

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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Exercise 6-5 (Journalizing Share Capital Transactions) The BCD Corporation was organized on January 2, 2021 with authorized capital of 500,000 shares of P20 par value ordinary share capital. During the first two years, the following transactions took place: 2021 Jan 2 Issued 125,000 shares to the incorporators at P26. Ma 2 Issued 62,500 shares at P35. r Issued 25,000 in exchange for land valued at P350,000 and a building valued at 1 Ма P550,000. The Income Summary account showed a credit balance of P750,000 and this 1 r De was transferred to the Retained Earnings account. 3 Declared cash dividends of P3.50 per share payable on January 31, 2022 to 1 shareholders of record of January 15, 2022. 2022 Jan Paid dividends declared on December 31. Fe Received subscriptions for 50,000 shares at P55, with a down payment of 35% of total subscriptions. Received balance due on the subscription of February 14 and shares were issued to the subscribers. Ma r De The Income Summary account showed a…
1. How much is the Ordinary Share Capital at year end? 2. How much is the Preference Share Capital at year end?
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C5.2
On January 1, 2020, Leilanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount anda fair value of P1,500,000 on July 1 The net income for 2020 was P3,000,000. How much is the appropriated retained earnings? Select the correct response O500,000 O 400.000 O 250,000 O 450,000 < Previous Continue
An entity was organized at the beginning of current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred:January 1 Sold 30,000 shares at P150 per shareFebruary 1 Issued 2,000 shares for legal services with fair value of P250,000. The shares on this date are quoted at P140 per share.March 1 Purchased 5,000 treasury shares at a cost of P120 per share.October 1 Issued P5,000,000 convertible bonds at 120. The bonds are quoted at 98 without the conversion feature.November 15 Declared a 2 for 1 share split when the market value of the share was P160.December 15 Sold 20,000 shares at P75 per share.December 31 The net income for the year was P2,000,0000. 1. Prepare the journal entries.2. Prepare the lead schedule 3. Prepare the stockholders equity section
On January 1, 2020, LeiLanie Company reported the following shareholders' equity: Share capital 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding. On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury. On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July 1. The net income for 2020 was P3,000,000. How much is the total shareholders' equity? Select the correct response: O 11,000,000 10,500,000 9,500,000 O 10,000,000 < Previous 3ms
(i only need answers for problem 14, i have already answered problem 13. see attached images, kindly answer it based on your knowledge, thank you!)
ABC Company was incorporated on January 1,2021. The following are the ordinary share transactions during the year: Jan. 1 number of shares authorized 85,000 Feb. 2 number of shares issued. 65,000 June 1 number of shares reacquired but not retired 5,000 Dec 1 2 for 1 share split What is the number of ABC Corp.’s ordinary share outstanding at December 31, 2020? To input answers, kindly follow the sample format below(no peso sign, with comma, no space): 100,000
The LL Company will issue shares of P10 par value common stock for all the assets and liabilities of the OO Company. LL Company’s common stock has a current market value of P40 per share. The OO Company’s net assets were as follows: Current Assets 1,280,000 Non-Current Assets 3,520,000 Liabilities 1,600,000 The fair market value of the current assets is P1,600,000 while that of the non-current assets is 6,400,000. All of the liabilities are correctly stated. LL Company issued sufficient shares of stock so that the fair market value of the stock is equal the fair market value of OO Company’s net assets. Referring to the previous item, To have a goodwill of P800,000, the number of shares to be issued by LL should be? 144,000 178,000160,000 180,000
On My Own Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: · Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash · Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 · May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? P5,755,000 P4,225,000 P3,500,000 P4,760,000
Ee 260.

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