B. Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of 6%, P50 par value preference shares, and 50,000 shares of no-par ordinary shares with a stated value of P10 per share. The following stock transactions were completed during the year: Jan. 10 Issued 10,000 ordinary shares for cash at P35 per share Mar. 1 Issued 10,000 preference shares for cash at P55 per share Apr. 1 Issued 2,500 ordinary shares for land. The asking price of the land was P90,000; the fair market value of the land was P85,000. May 1 Issued 7,500 ordinary shares for cash at P40 per share Aug. 1 Issues 1,000 ordinary shares to lawyers in payment of their bill for P50,000 pertaining to services rendered in helping the corporation organize Sep. 1 Issued 500 ordinary shares for cash at P60 per share Nov. Issued 2,000 preference shares for cash at P53 per share Prepare the share capital section of the shareholders' equity as at December 31, 2018.
B. Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of 6%, P50 par value preference shares, and 50,000 shares of no-par ordinary shares with a stated value of P10 per share. The following stock transactions were completed during the year: Jan. 10 Issued 10,000 ordinary shares for cash at P35 per share Mar. 1 Issued 10,000 preference shares for cash at P55 per share Apr. 1 Issued 2,500 ordinary shares for land. The asking price of the land was P90,000; the fair market value of the land was P85,000. May 1 Issued 7,500 ordinary shares for cash at P40 per share Aug. 1 Issues 1,000 ordinary shares to lawyers in payment of their bill for P50,000 pertaining to services rendered in helping the corporation organize Sep. 1 Issued 500 ordinary shares for cash at P60 per share Nov. Issued 2,000 preference shares for cash at P53 per share Prepare the share capital section of the shareholders' equity as at December 31, 2018.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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