At the end of 2018, ABC Company has 18,000 shares, P 20 par ordinary shares that were all issued at an average price of P 24 per share. The retained earnings balance on this date is P 550,000. During 2019, the company entered into the following transactions: Issued 13,000 ordinary shares at P 25 each. Exchanged 12,000 ordinary shares for an equipment. On this date, the ordinary share is selling at P 27. There is no established fair market value for the equipment acquired. Reacquired 5,000 of its own ordinary shares at P 26. Accepted subscriptions for 10,000 ordinary shares at P 28. The contract called for a 20% down payment. Sold 4,000 treasury shares at P 29 each. Collected the balance due on July 16 subscriptions and issued the corresponding certificates. January 1 March 13 May 8 July 16 August 28 December 1 Profit for the year 2019 is P 640,000. No dividends were declared during the year.

At the end of 2018, ABC Company has 18,000 shares, P 20 par ordinary shares that were all issued at an average price of P 24 per share. The retained earnings balance on this date is P 550,000. During 2019, the company entered into the following transactions: Issued 13,000 ordinary shares at P 25 each. Exchanged 12,000 ordinary shares for an equipment. On this date, the ordinary share is selling at P 27. There is no established fair market value for the equipment acquired. Reacquired 5,000 of its own ordinary shares at P 26. Accepted subscriptions for 10,000 ordinary shares at P 28. The contract called for a 20% down payment. Sold 4,000 treasury shares at P 29 each. Collected the balance due on July 16 subscriptions and issued the corresponding certificates. January 1 March 13 May 8 July 16 August 28 December 1 Profit for the year 2019 is P 640,000. No dividends were declared during the year.

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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