Activity #3Ruiz Med-care Inc, is a health insurance company. The following account balances appear on thestatement of financial position of Ruiz Med-care Inc.: Ordinary Shares (50,000 sharesauthorized), P10 par, P400,000; Share Premium ordinary, P42,500; and Retained Earnings,P299,500. The board of directors declared a 4% share dividend when the market price of thestock was P15 as share.Required:1. Journalize the entries to recorda. The declaration of the dividendb. The issuance of the shares2. Determine the fllowing amounts before the share dividend was declared:a. Total share capitalb. Total retained earningsc. Total shareholders' equity3. Determine the following amounts after the share dividend was declared:a. Total share capitalb. Total retained earningsc. Total shareholders' equity

Answered: Activity #3 Ruiz Med-care Inc, is a…

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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At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 217,600 Preferred shares, 8,000 shares outstanding, no-par Common shares, 181,900 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 472,940 111,500 557,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,700 common shares bought and retired at $4 per share 16 March 4,700 preferred shares bought and retired at $30.50 per share 20 May 10,000 common shares bought and retired at $1 per share 25 May 2,400 preferred shares bought and retired at $16.70 per share 30 May 11,500 common shares issued at $8.70 per share 15 Nov. 5,500 common shares bought and retired at $22 per share Required: 1. Give journal entries to record each share retirement transaction. (Round intermediate calculations to 2 decimal places and Round your final answers to the nearest whole dollar. If no entry is required for a…
At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 228,750 Preferred shares, 7,500 shares outstanding, no-par Common shares, 181,400 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 477,082 111,100 555,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,400 common shares bought and retired at $4 per share 16 March 4,300 preferred shares bought and retired at $32.90 per share 20 May 9,500 common shares bought and retired at $1 per share 25 May 1,900 preferred shares bought and retired at $18.30 per share 30 May 11,000 common shares issued at $10.30 per share 15 Nov. 5,100 common shares bought and retired at $30 per share
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Question 3 (Statement of shareholders’ equity): Below is the statement of shareholder’s equity of HKU Ltd.: The following transactions happen during 20X2: (a) Issuance of ordinary shares - 800 shares @ $23 per share (b) Repurchase 600 shares of preference share at $45 per share, out of share capital (c) Issue 4 bonus ordinary shares for each 10 ordinary shares. The company has decided to capitalize 1/5 of its beginning balance of the retained profits for this bonus share issuance. (d) Net income is $70,000 for the year. Prepare the statement of shareholders’ equity for year 20X2.
AB Co issues 5.000 50c shares for $6.000. Required: What are the amounts for share capital and share premium in the statement of financial position?
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W16-3 SB Company has outstanding 40,000 shares of P5 par common stock which had been issued at P30 per share. SB then entered into the following transactions. 1. Purchased 5,000 treasury shares at $45 per share. 2. Resold 500 of the treasury shares at $40 per share. 3. Resold 2,000 of the treasury shares at $49 per share. Instructions: Use the following code to indicate the effect each of the three transactions has on the financial statement categories listed in the table below; assuming SB Company uses the cost method. |= Increase; D = Decrease; NE = No effect. Liabilities Stockholders' Paid-in Equity Number Assets Retained Net Capital Earning Income 1 2 3.
Answer no. 4 to 6
The Corporation shareholders' equity section of the Statement of Financial Position includes the following accounts and balances: 12% Preference Share Capital, P100 par, 5,000 shares issued P500,000 Preference Share Premium 50,000 Retained earnings 750,000 The corporation decided to retire 2,000 of the Preference Shares at P115 per share. How much is the indicated gain or loss on retirement of the Preference Shares? Put a parenthesis if it is an indicated loss.
Entries for Stock Dividends Advanced Life Co. is an HMO for businesses in the Albuquerque area. The following account balances appear on the balance sheet of Advanced Life Co.: Common stock (600,000 shares authorized; 400,000 shares issued), $8 par, $3,200,000; Paid-in capital in excess of par-common stock, $800.000; and Retained earnings, $25,600,000. The board of directors declared a 2% stock dividend when the market price of the stock was $19 a share. Advanced Life Co. reported no income or loss for the current year. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. If an amount box does not require an entry, leave it blank. Retained Earnings Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock a2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank. Stock Dividends Distributable Common Stock b. Determine the following…
Read the transactions carefully and prepare the Journal Entry. Med-care incorporated is a health insurance company. The following account balances appear on the statement of financial position of Doc med-care Incorporated. Ordinary Shares P10 par, P400,000; Share Premium Ordinary, P42, 500; Retained Earnings P299,500. The board of Directors declared a 3 pesos dividend per share. Required: Journalize the entriesto record The declaration of the Dividend The issuance of the dividend
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